Shareholders of Flour Mills of Nigeria have given their approval for the separation of the BAGCO business into a 100% owned subsidiary during the company’s Annual General Meeting in Lagos.

The decision, passed by a show of hands, reflects the shareholders’ agreement to carve out BAGCO from Flour Mills of Nigeria, further divesting up to 60% equity of Flour Mills of Nigeria in BAGCO.

The corporate notice filed with the Nigerian Exchange Limited outlines the move, stating, “To carve out the business of BAGCO from that of Flour Mills of Nigeria into a 100% owned subsidiary of Flour Mills of Nigeria Plc.”

The Securities and Exchange Commission had previously approved the merger of BAGCO with Flour Mills of Nigeria in 2012.

The recent decision to create a subsidiary represents a strategic move in the company’s organizational structure.

Additionally, shareholders at the meeting approved the audited financial statement for the year ending March 31, 2023, along with a final dividend payment of N2.25 for every 50 Kobo ordinary shares held.

The re-election of several directors, including Muhammad Ahmad, Juliet Anammah, Paul Gbedebo, Yunus Saliu, and Folarin Williams, was also endorsed.

Despite a positive revenue outlook, an investment update from Cordros Securities cautioned that Flour Mills’ profitability might be impacted by the anticipated high cost of operations and foreign exchange challenges resulting from the devaluation of the naira.

The report highlighted the potential inhibiting factors, including a higher cost outlook in H2-24 and sustained FX losses impacting net operating income.

The United Bank for Africa (UBA) Plc has seized the assets of Stallion Nigeria Limited and its subsidiaries in Lagos, Port Harcourt, and Kano, following a Federal High Court order in Lagos in a debt lawsuit totaling N156,026,032,804.84.

The bank’s receiver-manager, Romeo Michael, executed the court order, protected by police personnel, in the three cities.

The court order, issued by Justice Akintayo Aluko on October 20, 2023, grants UBA control over the assets and restrains the defendants, including their directors, shareholders, employees, officers, and agents, from interfering with the receiver-manager’s duties.

The affected assets include properties in Port Harcourt, Lagos, and Kano, and the court has also frozen sums totaling N156 billion across various financial institutions.

Speaking on the development, the judge emphasized the importance of preserving the subject matter of the suit and issued an interim injunction against tampering with or dealing in any manner with the assets and monies subject to the order.

The court further scheduled a hearing for November 20, 2023, to consider the motion on notice.

According to court documents, UBA provided credit facilities to Stallion Nigeria Limited in 2014, with the understanding that the funds would be used by Stallion’s sister companies.

The defendants allegedly diverted funds, breached agreements, and failed to clear their debts amounting to N156 billion.

The legal action underscores the bank’s efforts to recover outstanding amounts and protect its interests in the face of contractual violations.

LSEG (London Stock Exchange Group) today released the third quarter 2023 investment banking analysis for the Sub-Saharan African. 

INVESTMENT BANKING FEES

• An estimated US$423.6 million worth of investment banking fees were generated in Sub-Saharan Africa during the first nine months of 2023, approximately levelling the value recorded during the first nine months of each of the previous two years.
• Equity capital markets underwriting fees totalled US$10.9 million, a 65% decline compared to year ago levels and the lowest first nine-month total in the region since our records began in 2000.  Debt capital markets underwriting fees declined 14% to a three-year low of US$57.8 million, while syndicated lending fees increased 11% to US$227.9 million.
• Advisory fees earned from completed M&A transactions in the region reached an eight-year high of US$127.1 million during the first nine months of 2023, up 9% from 2022 levels.
• Fifty-six percent of all Sub-Saharan African fees were generated in South Africa during the first nine months of 2023, followed by Angola (8%) and Nigeria (7%).
• Lazard earned the most investment banking fees in the region during the first nine months of 2023, a total of US$38.5 million or a 9% share of the total fee pool.

MERGERS & ACQUISITIONS

• The value of announced M&A transactions with any Sub-Saharan African involvement reached US$14.2 billion during the first nine months of 2023, a 58% decline compared to year ago levels and the lowest first nine months total since 2004.  The number of Sub-Saharan African deals declined 21% compared to a year ago, a ten-year low.
• Deals involving a Sub-Saharan African target totalled US$6.2 billion during the first nine months of 2023, down 74% from 2022 levels, dragged down by a 78% decline in Inbound deals involving a non-Sub-Saharan African acquiror.  Meanwhile, domestic deals declined 53% to $1.8 billion.
• Sub-Saharan African outbound M&A totalled US$1.8 billion, half the value recorded during the same period in 2022 and lower than any first nine-month period total since 2005.
• Energy & Power was the most targeted sector in Sub-Saharan African by value during the first nine months of 2023, while the highest number of deals was recorded in the financial sector.  South Africa was the most targeted nation, followed by Nigeria and Zimbabwe.
• JP Morgan topped the any Sub-Saharan African involvement announced M&A financial advisor league table during the first nine months of 2023.

EQUITY CAPITAL MARKETS

• Sub-Saharan African equity and equity-related issuance totalled US$300.6 million during the first nine months of 2023, a 70% decline compared to the same period in 2022 and the lowest first nine months total since 1999.  Just five new issues were recorded in the region, a low not seen since 2000.
• South African retail firm Pepkor Holdings, real estate company CBo Territoria, and mining development company Premier African Minerals were the only companies in the region to raise new equity funds during the first nine months of 2023.  No initial public offerings were recorded.
• Morgan Stanley and Capitalmind Investec shared first place in the Sub-Saharan African ECM underwriting league table during the first nine months of 2023.

DEBT CAPITAL MARKETS

• Overall Sub-Saharan African debt capital markets activity totalled US$7.3 billion during the first nine months of 2023, down 68% compared to year ago levels and the weakest opening nine-months for DCM activity in the region since 2008.
• A total of 38 new offerings were brought to market during the first nine months of 2023, a 37% decline compared to a year ago and a four-year low.
• Ivory Coast was the most active issuer nation during the first nine months of 2023, accounting for 51% of total bond proceeds, followed by South Africa (31%).
• Government & Agency issuers accounted for 51% of proceeds raised during first nine months of 2023, while Financials issuance accounts for 35%.
• JP Morgan took the top spot in the Sub-Saharan African bond underwriting league table during the first nine months of 2023, with US$1.2 billion of related proceeds, or a 16% market share.