The battle for control of FBN Holdings intensifies amid resignation and the emergence of billionaire Femi Otedola as the single largest shareholder of the leading financial institution. Following the official declaration of Otedola as the largest shareholder of the company, Remi Babalola, a non-executive director and the Chairman of FBN Holdings, announced his resignation on Friday, according to the people familiar with the happenings in the company.
Babalola quit his position as Chairman of FBN Holdings just two days after FBN Holdings confirmed that Nigerian billionaire Femi Otedola was the largest shareholder of the institution. The timing of Babalola’s resignation may not be unconnected to Otedola’s new status in the bank, especially given that Remi Babalola was appointed barely a year ago.
The FBN Holdings power tussle took a turn immediately after Otedola announced that he had purchased additional 200 million shares estimated at about N2.3 billion to cement his position as the largest holder in the company.
Otedola had reportedly acquired an additional 2.5% stake in the company, taking his overall equity stake to 7.57%. In comparison, Tunde Hassan-Odukale is said to have a 5.36% stake, a move which he made after Otedola upped his acquisition to 5.07% earlier.
After Babalola’s resignation, the Central Bank of Nigeria approved the decision to appoint Ahmad Abdullahi as the new Chairman of the company, to replace Babalola. The CBN’s Director of Corporate Communications, Osita Nwanisobi said that the apex bank was duly informed of Babalola’s resignation, at the same time that a contest was going on between some significant shareholders for control of the company.
The CBN spoke highly of Remi Babalola, lauding a series of achievements seen under his leadership. In a farewell e-mail, Babalola said that he resigned his appointment as Non-Executive Director and Chairman of the Board of Directors after a reflection on recent events which are related to his personal values.
It was however not clear whether Abdullahi was nominated by Otedola, the company’s largest shareholder. Since Otedola himself had stated that he acquired the shares for investment purposes only and not for a Board position, it would not be far-fetched to believe that the billionaire nominated someone who he believes is capable to lead the company’s Board.
In Babalola’s resignation letter seen by PremiumTimes, the former Nigerian Minister of State for Finance and now the former Chairman of FBN Holdings said he resigned because of the stench and corruption in the bank’s system.
He said “With the rot, stench and corruption in the system, it has been well-nigh impossible for me to break; and upon deep reflection and partial to my personal values, I write to formally resign my appointment as a non-executive director and chairman of the board of directors of FBN Holidays PLC, effective immediately,” he wrote.
Coca-Cola Launches JAMII: its New Sustainability Platform in Africa
Today, Coca-Cola Africa Operating Unit (“AOU”) and its bottling partners announced the launch of JAMII, the new Africa-focused sustainability platform. The platform houses the Company’s existing and new sustainability initiatives. Through this signature platform, Coca-Cola hopes to attract like-minded partners to help accelerate on-the-ground impact of its initiatives.
The new platform will build and expand on the past accomplishments in three areas; water stewardship, the economic empowerment of women and youth and waste management. This will be delivered together with bottling partners, system employees, and several NGO partners.
“We recognize the responsibility we have as market leaders to make a meaningful difference – to empower and protect the communities and the environment in which we operate. Whether it is giving people access to safe drinking water, creating economic opportunities for people in dire need of it, or reducing the impact of our operations on the environment- we are committed to making that difference,” said Bruno Pietracci, Africa President at The Coca-Cola Company.
Patricia Obozuwa, AOU Vice President for Public Affairs, Communications and Sustainability added; “We chose the name JAMII, a Swahili word that means Community, Society, People – because it represents who we are as Africans and aligns with our values as an organization- our resilience, our commitment, and our spirit of community. Consolidating our sustainability efforts under this umbrella will allow us to strengthen our value proposition and make good on our promise to continue to be a trusted partner for sustainable growth in Africa.”
In the area of women and youth economic empowerment, JAMII will promote and stimulate entrepreneurship opportunities through the provision of improved access to skills training, networks, finance & markets. To date, over 2 million women across Africa have been economically enabled as part of the 5by20 program.
In the area of water stewardship, we will replenish 100% of the water used in production of our products by managing water use efficiency in our operations, supporting the conservation of natural water resources and improving community water access and climate change adaption. So far, combined efforts by Coca-Cola Africa, The Coca-Cola Foundation and its partners have resulted in sustainable access to drinking water for over 6 million people through the Replenish Africa Initiative (RAIN).
For waste management, Coca-Cola Africa is committed to driving a world without waste. Nearly all of Coca-Cola’s packaging is already recyclable with the goal of recycling the equivalent of 100% of its packaging waste by 2030.
Obozuwa added that “Coca-Cola Africa is already forming new partnerships to facilitate the implementation of JAMII projects that will deliver on these goals.”
Internally, JAMII will inspire employees to make a difference in their immediate communities. Employee-nominated charities will receive grants and employee volunteering will be encouraged. Also, The Coca-Cola Employee Disaster Relief Fund will support employees facing financial hardship as a result of a natural disaster.
Dangote Cement Commences 2nd Phase of Shares Repurchase for 50kobo Each
Dangote Cement Plc has announced the commencement of the second tranche of its share buyback programme.
It is a 170 million shares repurchase which will run from 19th to 20th of January as contained in a release signed by the company’s deputy secretary, Edward Imoedemhe on Wednesday.
“Tranche II will be executed under the approval granted by the Company’s shareholders at the Annual General Meeting of DCP, which was held on 26 May 2021, within the framework provided under Rule 398 (3)(xiv) of the Securities and Exchange Commission’s (“SEC”) Rules and Regulations (as applicable) and in accordance with Rule 13.18 of the Rulebook of the Nigerian Exchange Limited (“NGX”). Based on the aforementioned shareholders’ approval, the number of shares to be repurchased under the Share Buy-Back Programme will not exceed 10% of DCP’s issued capital.
“The Programme is being effected in tranches, with Tranche II being executed by the appointed stockbrokers on the Company’s behalf.”
The release further stated that the company will continue to monitor the evolving business environment and market conditions in making decisions on further tranches of the Share Buy-Back Programme, adding that an announcement will be published upon completion of Tranche II of the Programme.
The Mode of Exchange is open market on the Nigerian Exchange Limited with current shares: 17,040,507,404 as fully paid-up ordinary shares of 50 Kobo each; Tranche Size Up to 170,003,074 fully paid-up ordinary shares of 50 Kobo each, representing 1% of the currently issued shares, less treasury shares.
Shareholders and investors were advised to exercise caution when dealing in the securities of Dangote Cement until the completion of Tranche II of the Share BuyBack Programme.
Meristem Stockbrokers Limited and Vetiva Securities are joint stockbrokers for the transaction.
The market value of the company stands at N4.7 trillion as of Wednesday with Aliko Dangote as the majority owner.
The company, which disclosed the ambition two years ago, said it would purchase 170 million units of its common stock from the open market in the new phase of the share buyback scheme launched in December 2020.
The scheme is aimed at making fewer shares available for trade as it drives its share price.
Having checked its current valuation as being lower than it should be, the multinational company seeks to buy back 10 percent (1.7 billion units) of its outstanding shares hoping that the repurchase will drive up price.
It repurchased 0.24 per cent (40.2 million units) of its ordinary shares for N9.8 billion in the first tranche at the end of 2020, with the intention of acquiring 0.5 per cent.
BUA Group Lists BUA Foods Plc on Nigerian Exchange Limited
BUA Group, a leading foods, infrastructure, mining and manufacturing conglomerate in Nigeria with diversified investments, has listed its food unit, BUA Foods Plc on the Nigerian Exchange Limited on Wednesday.
The Nigerian Exchange Limited listed the company by introduction on the Main Board of the Exchange.
BUA Foods Plc listed a total of 18 billion ordinary shares at N40.00 a unit under the Consumer Goods sector of NGX, with the trading symbol, BUAFOODS.
Following the listing of BUA Foods, the market capitalisation of the Nigerian Exchange Limited grew by N720 billion, further boosting the liquidity in the Nigerian capital market and providing opportunities for wealth creation.
According to the NGX, “it is expected that this listing will also increase the visibility of the food manufacturing, processing, and distribution company, BUA Foods, to investors on the African continent and across the globe.
“NGX facilitated over N7 Trillion worth of capital raises across several asset classes for both public and private corporations in 2021. As a multi-asset Exchange, NGX is strategically positioned to be the preferred listing and investment destination connecting Nigeria, Africa and the world.”
Since listing on the Exchange on Wednesday, the price of BUA Foods Plc has appreciated by 20 percent to N48.40 a unit with investors trading 11,289,437 shares valued at N544,692,788.80 on Thursday.
In 2020, BUA Group listed BUA Cement Plc on the Nigerian Stock Exchange, now Nigerian Exchange Limited, and in 2021, BUA consolidates its foods business into BUA Foods and subsequently listed it on the stock market on January 5, 2022.
Founded by Abdul Samad Rabiu in 1988, BUA Group is a leading conglomerate with diversified investments spanning key business sectors in Africa. BUA Cement Plc, the second-largest cement manufacturing company in West Africa, now produces 8,000,000 MTPA, Combined Cement Production Capacity. While BUA Sugar Refinery Limited combined sugar production capacity stood at 1,500,000 MTPA.
BUA Foods Plc comprises of:
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