Merger and Acquisition

Bankman-Fried’s FTX Says no Talks to Acquire Robinhood

Published

1 year ago

June 28, 2022

Sam Bankman-Fried’s FTX crypto exchange said it is not in talks to acquire Robinhood Markets Inc, after a report on Monday claimed the exchange was exploring such a deal.

Bloomberg News reported on Monday FTX was discussing internally how to buy the app-based brokerage and that Robinhood had not received a formal takeover approach, citing people with knowledge of the matter.

“There are no active M&A conversations with Robinhood,” Bankman-Fried said in an emailed statement.”We are excited about Robinhood’s business prospects and potential ways we could partner with them.”

Robinhood declined to comment. The retail-trading platform’s shares were down 5% in extended trading after jumping over 14% on the report.

Last month, the founder and chief executive of FTX revealed a 7.6% stake in Robinhood but said he did not have any intention of taking control of the retail-trading platform.

Robinhood’s dual-class shares give its founders control of 64% of the voting shares outstanding, making it virtually impossible for takeovers without their support.

The popular trading platform has come under pressure this year as trading volumes ease from 2021’s frenetic pace – when retail investors used it to pump money into shares of so-called meme stocks such as GameStop and AMC Entertainment.

That slowdown, along with a sell-off in high-growth technology stocks, has driven a near 50% slump in Robinhood shares this year. The company had a market valuation of nearly $7 billion as of Friday’s closing price.

FTX’s U.S. arm announced in May it would launch a stock trading platform by the end of the summer. Last week, it acquired partner Embedded Financial Technologies for an undisclosed amount, which would add custody, execution and clearing services to its equity trading platform.

FTX and its billionaire founder Bankman-Fried have rescued other players during the crypto market’s recent crash. It provided crypto lender BlockFi with a $250 million revolving credit facility to help the firm avoid a liquidity crunch.

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Merger and Acquisition

Dangote Industries Set to Revolutionize Agriculture Industry with Mega Merger, Creating Dangote Foods Plc

Published

2 days ago

September 28, 2023

Samed Olukoya

Dangote Industries Limited has unveiled plans for a merger that will give rise to a formidable entity known as Dangote Foods Plc.

This colossal conglomerate is poised to transform the agriculture industry and enhance food security across the nation.

The merger will combine three subsidiaries of Dangote Industries Limited, including Dangote Sugar Refinery, Dangote Salt, and Dangote Rice, resulting in a diversely profitable mega-company.

The fusion, scheduled for completion by the end of 2023 pending regulatory approvals, promises to yield significant benefits for all stakeholders, notably shareholders.

Dangote Sugar Refinery’s Group Managing Director and CEO, Mr. Ravindra Singhvi, highlighted the merger’s strategic importance, stating its potential to create substantial shareholder value.

The amalgamation will not only generate cost-saving synergies but also expand product offerings and revenue streams.

Dangote Foods Plc is set to become a powerhouse in the market, boasting a wide array of products, including sugar, salt, tomato, and rice, among others. This merger will facilitate broader distribution capabilities and increased operational efficiency through synergy.

The journey towards this monumental merger began when Dangote Sugar Refinery notified the Nigerian Exchange Limited of its intention to merge with NASCON Allied Industries Plc and Dangote Rice Limited, both subsidiaries of Dangote Industries Limited.

This move marks a pivotal moment in the corporate history of Nigeria, with Dangote Industries Limited reaffirming its commitment to driving growth, innovation, and food security for the nation.

As regulatory approvals progress, Dangote Foods Plc is poised to emerge as a prominent player in Nigeria’s agricultural landscape, ultimately paving the way for a brighter and more sustainable future for the country.

Merger and Acquisition

Eni’s Strategic Shift: Nigerian Agip Oil Co. Sold to Oando PLC

Published

4 weeks ago

September 4, 2023

Investors King

Italian energy giant Eni has unveiled its plan to sell its exploration and production subsidiary, Nigerian Agip Oil Co. (NAOC), to indigenous energy solutions provider, Oando PLC.

This strategic move aligns with Eni’s 2023-26 strategy and awaits approval from local and regulatory authorities.

Eni’s decision to divest its onshore assets is driven by various factors, including ongoing oil thefts and spills and a shift towards more focused exploration budgets.

The Nigerian Agip Oil Company primarily operates in onshore oil and gas production and power generation.

It holds interests in four onshore blocks, oil mining licences (OMLs), two onshore exploration leases, and two power plants within Nigeria.

Previously, Eni held a 20% stake in four OMLs, with Oando also having a 20% stake, while the remaining 60% was owned by NNPC E&P.

Production from these assets feeds into the Obiafu-Obrikom plant and the Brass terminal, contributing 24,000 barrels of oil equivalent per day to Eni’s net production in 2022.

Eni further exports a substantial portion of its gas production from these licences to the Nigeria LNG (NLNG) plant, where it maintains a 10.4% interest, with additional gas going to the Okpai plant and another open-cycle plant in Rivers State.

Ongoing efforts in the area include workovers to mitigate mature field decline and the development of new compressors to reduce gas flaring.

NAOC also manages the Okpai 1 and 2 power plants, boasting a combined capacity of 960 MW, along with two onshore exploration areas, OPL 282 and 135, where it holds 90% and 48% stakes, respectively.

Despite this divestment, Eni affirms its commitment to Nigeria through Nigerian Agip Exploration and Agip Energy and Natural Resources, as well as its continued involvement in onshore and offshore assets operated by others. Eni will also retain NAOC’s 5% interest in the Shell Production Development Company joint venture.

Wale Tinubu, CEO of Oando Group, expressed excitement about the deal’s potential to unlock unprecedented opportunities for the Nigerian energy company. This transaction aligns with Oando’s strategy of acquiring, enhancing, appraising, and efficiently developing reserves.

Oando’s acquisition of NAOC includes 40 discovered fields, with 24 currently in production, as well as 12 production stations, 1,490 km of pipelines, and three gas processing plants.

This purchase will significantly bolster Oando’s reserves, increasing them from 503.3 million barrels of oil equivalent (boe) to a formidable 996.2 million boe.

Merger and Acquisition

Access Bank Acquires Standard Chartered’s African Subsidiaries, Expanding its Global Footprint

Published

3 months ago

July 14, 2023

Investors King

Access Bank, a leading Nigerian financial institution, has reached an agreement to acquire Standard Chartered’s subsidiaries in five sub-Saharan African countries.

This strategic deal marks the success of Standard Chartered’s divestment plan announced last year, which aimed to streamline its operations and focus on faster-growing markets in the region.

The subsidiaries to be acquired by Access Bank include those in Angola, Cameroon, Gambia, and Sierra Leone, along with Standard Chartered’s consumer, private, and business banking business in Tanzania. As part of the agreement, Access Bank will assume responsibility for providing uninterrupted banking services to the employees and clients of Standard Chartered’s businesses in these countries.

Standard Chartered’s decision to divest its African subsidiaries aligns with its global strategy, which seeks to enhance operational efficiencies, reduce complexity, and drive scale. By redirecting resources within the Africa and Middle East (AME) region, Standard Chartered aims to capitalize on other areas with substantial growth potential.

The deal signifies a major step forward for Access Bank, solidifying its position as a leading player in the African banking landscape. With recent expansions in Europe and an extensive presence in key trading corridors across Africa, Access Bank is poised to build a robust global franchise.

The acquisition will enable Access Bank to serve as a gateway for payments, investment, and trade within Africa and between Africa and the rest of the world.

The value of the transaction remains undisclosed, and the completion of the deal is expected within the next year, pending regulatory approvals in the respective countries, as well as in Nigeria.

Sunil Kaushal, Standard Chartered’s regional CEO for AME, expressed confidence in the strategic decision, emphasizing the opportunity it provides to reallocate resources to high-growth areas within the region. This move allows Standard Chartered to optimize its operations and further strengthen its position in markets poised for expansion.

Roosevelt Ogbonna, Access Group Managing Director, commented on the acquisition, highlighting the bank’s commitment to bridging the gap between cross-border and domestic transfers across all business segments. With a focus on facilitating seamless transactions and enhancing connectivity, Access Bank aims to foster increased trade and investment within Africa and beyond.