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BUA Foods Rice Unit to Commence Production this Year

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BUA Foods Plc

A subsidiary of BUA Group, BUA Foods Plc, on Tuesday stated that it will begin rice business in the second half of the year.

Investors King recalls that BUA Foods listed N18 billion shares on the main board of the Nigerian Exchange Limited (NGX) two weeks ago.

The rice production is expected to recommence with 480 MT daily capacity and in future rise to 2,700 MT daily.

The Managing director of BUA Foods Plc,  Ayodele Abioye disclosed this while presenting the company’s “Facts Behind the Listing (FBL)” at a webinar organised by NGX.

Abioye noted that the new rice and pasta plants will be completed this year to add to the already existing three businesses of the company– sugar, flour and pasta.

In his words, “BUA Foods Plc was birthed in 2021, and this was an outcome of a planned restructuring process of all our food business entities. 

“Today, we are here to follow up on this listing of this enlarged entity which became listed on the Nigerian Exchange on the 5th of January, 2022.

“Three of our five business divisions, namely sugar, flour and pasta, are currently and fully operational and are contributing to our current revenue stream. 

“While our rice division will begin operation before the end of the year, we are working to also recommence our edible oil operation in the mid to long-term frame.”

Abioye further mentioned that the two subsidiaries of the company are growth engines strategically put in place for long-term economic value creation adding that the sugar refinery opens a market expansion opportunity into the West African and African market. 

He averred that the company’s current market leadership makes it protected in the marketplace with its ongoing expansions.

Abioye hinted that its relationship with its host communities and supply network will not be soiled as it embarks on expansion.

“We will also continue to drive our supply chain integration, again, through the backward integration programme,” he added.

Also speaking, the chief financial officer, BUA Foods Plc, Abdul Rasheed Olayiwola hinted that the company’s revenue growth is impressive. 

Comparing the income in 2020 and November, 2021, Olayiwola said “Bua Foods has experienced significant revenue growth.

“We recorded a 58% growth in revenue for the 11 months, ending November 2021. Sugar remains the highest contributor to our revenue, contributing a total of 63% of our total revenue.

“The reason for this significant growth in our revenue is not far-fetched. It is simply due to our market acceptability.” 

The chief financial officer stated that BUA Foods gross profit grew from N64.9 billion in 2020 to N96.2billion in 2021 and the pre-tax profit (PBT) rose from N49.6 billion in 2020 to N78.8 billion in November, 2021.

He pointed that despite the rise in BUA Foods production cost, it obtained a 29.5% profit margin.

“The company will become more diversified as its rice and edible oil become operational within the year and in the short-term period,” Olayiwola explained.

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Merger and Acquisition

Access Bank Plans Expansion Into Angolan Market

Access Holdings Plc has announced its planned acquisition of  a 51 percent majority equity stake in Angolan Bank, Finibanco.

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Access bank

Access Holdings Plc has announced its planned acquisition of  a 51 percent majority equity stake in Angolan Bank, Finibanco.

Investors King learnt that Access Bank Plc is expanding its presence to Angola through the acquisition of a 51 percent stake in Finibanco.

The acquisition of Finibanco was disclosed in a filing to the Nigerian Exchange Limited by Access Holdings Plc.

Finibanco is a full-service commercial bank with over 20 branches and around $300 million in total assets in Angola.

According to Access Holding Secretary, Mr Sunday Ekwochi, the Angolan market as the sixth largest economy in Africa and the seventh largest country overall, with a vast and diversified natural resource base and a growing population, represents a strong potential for the bank’s growth aspirations

The Secretary further stated that the transaction is subject to regulatory approvals in Nigeria and Angola. The transaction is expected to be completed during the first half of 2023. This will however be subjected to customary conditions.

Access Bank has been on an acquisition spree since the beginning of 2021. The acquisition of a majority stake in Finibanco makes it Access’s sixth acquisition in the last 18 months.

In June 2022, it acquired a $37 million stake in Kenya Sidian Bank. Other acquisitions include African Banking Corporation of Botswana Limited, African Banking Corporation Zambia Limited, as well as Cavmont Bank.

Access bank is one of the leading banks in Nigeria. As a commercial bank, it operates through a network of more than 700 branches and service outlets, spanning 3 continents, 17 markets and 45 million customers.

The lending bank employs 28,000 people in its operations in Nigeria and has subsidiaries in sub-Saharan Africa and the United Kingdom. It also has a branch in Dubai, UAE and representative offices in China, Lebanon and India.

As at 31 March 2022, Access Bank had total assets of approximately US $28.8 billion.

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Company News

Kogi Government Seals Dangote’s Largest Cement Factory

The largest cement factory in Nigeria owned by Aliko Dangote, the richest black man, has been shut down by the Kogi State Internal Revenue Service (KGIRS) for tax evasion and acquisition controversy.

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Dangote Cement Obajana 1

The largest cement factory in Nigeria owned by Aliko Dangote, the richest black man, has been shut down by the Kogi State Internal Revenue Service (KGIRS) for tax evasion and acquisition controversy.

A staff, who works at Dangote Cement factory in Obajana, Kogi State, confirmed the development, saying “in fact, I’m on my way home as we speak”.

The decision, which was obviously backed by the Kogi State House of Assembly, was supported by Kingsley Fanwo, the Kogi State Commissioner for Information, who said the decision was taken after an investigation was conducted into the acquisition of Obajana Cement Company by Dangote.

He said: “Pursuant to the Constitutional authorities of the Kogi State House of Assembly, and upon petition by the people of Kogi State, an investigation was carried out on the acquisition of Obajana Cement Company by Dangote Company.

“It was found that no valid acquisition took place, as Dangote could not show evidence of what was paid as consideration for the acquisition.

“The legislators invited the Chairman of the Company, Aliko Dangote, before the house for explanations but he failed to appear before the state assembly, giving excuses.

“The House of Assembly, therefore, ordered the closure of the company pending when they are able to present it with credible evidence of a valid acquisition.”

The cement factory was estimated at 16.25Mta capacity across five lines of production, making it the largest cement factory in Nigeria.

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NNPCL Acquires 380 Oando Retail Stations Among Other Assets

The Nigerian National Petroleum Company Limited (NNPCL) has acquired all 380 Oando retail outlets among other assets which include eight Liquefied Petroleum Gas (LPG) plants and three lube blending plants. 

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The Nigerian National Petroleum Company Limited (NNPCL) has acquired all 380 Oando retail outlets among other assets which include eight Liquefied Petroleum Gas (LPG) plants and three lube blending plants. 

The Nigerian National Petroleum Company Limited has acquired OVH Energy, a major downstream player in the oil and gas industry.

OVH Energy (OVH) Limited owns Onado and operates all the Oando- branded retail service stations across the country.

Speaking at the unveiling of one of the new NNPC Ltd stations formerly Oando in Abuja on Saturday, the Group Chief Executive Officer NNPC Limited, Mele Kyari, said, “The acquisition will bring over 380 additional filling stations under NNPC Retail brand in Nigeria and Togo”. 

He added that NNPC Limited has a target to attain 1,500 retail oil stations. The recently rebranded company aims to be the largest petroleum product retail network in Africa.

“It is absolutely not about assets, we are building relationships. At this moment, we are the largest downstream company in Nigeria and by this merger.  We are also likely going to be the largest downstream company in Africa.” the GCEO, Mele Kyari stated.

Other assets acquired under the OVH Energy deal include a reception jetty (ASPM) with 240,000 metric tons monthly capacity. The deal also included eight Liquefied Petroleum Gas (LPG) plants, three lubes blending plants, three aviation depots, and 12 warehouses. 

Investors King could recall that the passage of the Petroleum Industrial Act, 2021 has transformed NNPC into NNPC Limited. 

Hence NNPCL is expected to operate as a commercial and profit-focused company. Unlike NNPC which ran for the government by remitting to the Federation Account, NNPCL has no mandate to do so.

The acquisition of OVH Energy Marketing Limited by the Nigerian National Petroleum Company Limited (NNPCL) is considered a landmark deal as NNPCL is set to refocus into retail oil marketing. 

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