Company News

BUA Foods Rice Unit to Commence Production this Year

Published

2 years ago

January 19, 2022

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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Company News

Flour Mills of Nigeria Repays N51.64 Billion Series 2 Commercial Paper

Published

2 days ago

December 7, 2023

Investors King

Flour Mills of Nigeria Plc (FMN) has successfully repaid its N51.64 billion Series 2 Commercial Paper as revealed in a statement issued by the company.

This follows the earlier repayment of its N13.33 billion Series 1 Commercial Paper in August 2023.

Both the Series 1 and Series 2 Commercial Papers, totaling N64.97 billion, were initially issued on February 22, 2023, under FMN’s N200 billion Commercial Paper Programme.

The Series 1, with a yield of 13.0%, raised N13.3 billion, while the Series 2, with a yield of 14.0%, raised N51.64 billion.

FMN had launched its N200 billion Commercial Paper Programme on February 10, 2023, reflecting the company’s strategic financial planning.

The Group Chief Finance Officer, Mr. Anders Kristiansson, expressed satisfaction with the timely and successful repayment of the Series 2 Commercial Paper.

He emphasized FMN’s commitment to financial prudence and acknowledged the confidence placed in the organization by the investing public.

Kristiansson expressed gratitude to stakeholders for their continuous support, reiterating FMN’s dedication to delivering sustainable value and upholding the highest standards of corporate governance.

In addition to the successful repayment, FMN tapped into the market for its Series 3 Commercial Paper in June 2023, with subscriptions from banks and Pension Fund Administrators, contributing 39.7% and 40.8%, respectively.

The transaction was managed by FBNQuest Merchant Bank Limited as the Lead Arranger, with ChapelHill Denham Advisory Limited, FCMB Capital Limited, and United Capital PLC serving as Joint Arrangers.

Company News

SpaceX Explores $175 Billion Valuation in Insider Share Sale Talks

Published

3 days ago

December 7, 2023

Investors King

Elon Musk’s SpaceX is reportedly in discussions about initiating a tender offer that values the aerospace manufacturer and space transportation company at $175 billion or more.

According to insiders familiar with the matter, the most valuable US startup is contemplating a tender offer ranging between $500 million and $750 million.

Sources suggest that SpaceX is evaluating the possibility of offering shares at approximately $95 per share, with the terms and size of the tender offer subject to change based on the level of interest from potential insider sellers and buyers.

If the $175 billion valuation is realized, it would mark a notable increase from the $150 billion valuation obtained through a tender offer earlier this summer.

This elevated valuation would position SpaceX among the world’s 75 largest companies by market capitalization, comparable to industry giants such as T-Mobile USA Inc., Nike Inc., and China Mobile.

SpaceX, known formally as Space Exploration Technologies Corp., dominates the commercial space launch services market with its Falcon rockets and operates the Starlink service, which provides internet from space via a growing constellation of satellites in low-Earth orbit.

With anticipated revenues of about $9 billion in 2023, projected to rise to approximately $15 billion in 2024, SpaceX’s strategic moves, including a potential initial public offering for Starlink, underscore the company’s ambitious plans and strong market position.

Representatives for SpaceX have not yet responded to requests for comment on these recent developments.

Merger and Acquisition

Bitmama Inc. Acquires Payday, Expanding Fintech Footprint in Nigeria

Published

4 days ago

December 5, 2023

Investors King

Nigeria’s blockchain payments platform Bitmama Inc. has successfully acquired Payday, a virtual card service provider.

The acquisition, facilitated through Bitmama’s cross-border payments product, Changera, signals a pivotal shift in the industry and consolidated the blockchain payment platform by acquiring 100% of Payday’s customer base.

Launched in 2021, Changera is set to absorb key personnel from Payday, spanning various departments like marketing, customer service, and engineering.

While specific details of the financial terms remain undisclosed, a source close to the matter revealed that the acquisition process is approximately “85% complete.”

For the over 300,000 customers formerly under Payday’s purview, the transition to Changera’s care promises a seamless experience, with minimal noticeable changes.

Despite Payday CEO Favour Ori’s integration into Bitmama’s team remaining uncertain, Changera is well-positioned with an established leadership and a robust technical team.

A senior member of Bitmama’s management assured that Payday’s brand will persist but will now operate under the broader umbrella of Changera, supported by its stablecoin infrastructure.

This integration aims to address operational challenges faced by Payday, such as industry-wide charge-back fraud, disruptions in Mastercard services, and the departure of senior team members.

Post-acquisition, Bitmama plans to embark on an ambitious roadmap, including the development of a new solution enhancing foreign exchange (FX) transactions for African businesses.

Anticipated for launch in Q1 2024, this solution aims to facilitate smoother and more efficient B2B cross-border financial interactions.

The acquisition of Payday by Bitmama aligns with the broader trend of strategic consolidations within the fintech industry, reflecting a pattern where companies seek partnerships and acquisitions to overcome market challenges and scale operations.

This move mirrors similar strategic consolidations, including the acquisition of Chaka by Risevest in September 2023, underscoring the industry’s drive towards collaborative growth.