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NGX: 16 Companies Fined N779m Between 2020 and 2022

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Nigerian Exchange Limited - Investors King

No fewer than 16 business firms have been penalised by the Nigerian Exchange Limited (NGX) for market-related offences between 2020 and 2022.

Investors King gathered that the total sum of N779.5 million was imposed as fine on the erring companies that cut across manufacturing, food, insurance, consumer goods, technology, banking industries amongst others.

The penalty was as a result of non-compliance with some of the rules and requirements of the exchange for the timely filing of results and accounts by the company.

The NGX data shows that in 2022, fourteen companies were fined the sum of N170.6 million. They include: ETI, FBN Holdings Plc, Union Bank of Nigeria Plc, Honeywell Flour Mills Plc, Unity Bank Plc, Presco Plc, Ardova Plc, C&I Leasing Plc, Coronation Insurance Plc, Royal Exchange Plc, PZ Cussons Nigeria Plc, LASACO Assurance Plc, Mutual Benefits Assurance Plc and Omatek Ventures Plc.

While in 2021, seven companies were sanctioned N586 million and in 2020, the sum of N22.9 million was imposed as fine on three business firms.

Breakdown of the trade offenses and fines for the companies indicates that Coronation Insurance was fined N14.9 million, C & I Leasing was fined N11.6 million while a fine of 9.7 million was imposed on Ardova in 2022.

The NGX fined Presco N5.1 million, Honeywell Flour Mills N1.2 million for failure to submit third quarter 2021 result and account before the deadline.

For the erring financial companies, in 2022, ETI was sanctioned N3.2m; in 2021, FBN Holdings was fined N8.1m, Union Bank of Nigeria got N1.2m fine, Fidelity Bank Plc was fined N1.6m while Unity Bank Plc was sanctioned N4.2m.

An Information and Communications Technology firm, Omatek Ventures got a fine of N537.2m in 2022 for refusal to present audited results and accounts for 2015–2018 to the investing public.

LASACO Assurance was penalised N29.2m between 2020 and 2022 for not complying with some post-listing requirements. In 2022, N5.3m was levied for failure to submit its 2021 audited financial statement to the investing public, while in 2021, N15.1m was fined for not presenting the audited 2020 result and accounts.

The company was also sanctioned N8.8m in 2020 for failure to submit audited 2019, first quarter 2020 and second quarter 2020 financial results.

Investors King learnt that the sanctions on the listed companies have discouraged investors from trading in their stock due to the huge fines.

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Merger and Acquisition

Access Bank Plc Expands Footprint in Tanzania with ABCT Acquisition

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Access bank

Access Bank Plc has taken a significant stride in expanding its presence in East Africa through the acquisition of a majority equity stake in African Banking Corporation of Tanzania (ABCT) Limited, a subsidiary of Atlas Mara Limited.

The acquisition, which was completed recently, underscores Access Bank’s ambition to become one of the leading financial institutions in Africa.

The transaction not only solidifies its position within the East African banking landscape but also aligns with its broader goal of enhancing intra-African trade and fostering economic development across the continent.

Commenting on the transaction, Roosevelt Ogbonna, Managing Director of the Bank, said: This strategic move represents a notable step towards setting a railroad in Tanzania for intra-African trade within the East African region, Africa and the rest of the world. It underscores our commitment to creating a robust East African banking network, driving positive change and innovation. We are excited about the opportunities this acquisition presents for our operations in Tanzania and are eager to leverage our
combined strengths to deliver exceptional financial solutions and experiences to our customers.

Commenting on the transaction, John Imani, Managing Director, African Banking Corporation (Tanzania) Limited, said: “The completion of our transaction with Access Bank Plc, not only underscores the strong confidence of Access Bank in our operations and the Tanzanian market but delivers new and exciting opportunities for our customers, employees, and stakeholders. The new entity is poised to enhance our service offerings, leveraging Access Bank’s extensive resources and expertise to deliver even greater value to our clients. We look forward to an exciting and prosperous future as part of the Access Bank family, driving economic growth and financial inclusion across Tanzania.”

Following the acquisition, Access Bank plans to merge ABCT with the consumer, private, and banking business of Standard Chartered Bank Tanzania, another entity it is acquiring.

This strategic integration aims to create Access Bank Tanzania, positioning it as a prominent player in the country’s banking sector.

The combined entity will offer a comprehensive range of banking products and services tailored to meet the evolving needs of Tanzanian businesses and individuals.

Access Bank’s expansion into Tanzania is expected to stimulate competition in the local banking industry, spur innovation, and deepen financial inclusion.

With a robust presence across multiple African markets, Access Bank continues to demonstrate its commitment to driving sustainable growth and fostering economic resilience across the continent.

As Access Bank Tanzania prepares to launch under its new structure, stakeholders are anticipating enhanced banking solutions and increased accessibility that will contribute to Tanzania’s economic prosperity in the years ahead.

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Merger and Acquisition

Tolaram Acquires 58.02% Stake in Guinness Nigeria from Diageo

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Guiness

Tolaram Group has acquired a 58.02% stake in Guinness Nigeria from Diageo Plc. for ₦81.60 per share, representing approximately a 60% premium over Guinness Nigeria’s closing price of ₦50 on Monday.

Announced on June 11, 2024, the acquisition underscores Tolaram’s commitment to expanding its footprint in Nigeria’s robust consumer market.

Diageo, the UK-based beverage giant, will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria, now under Tolaram’s majority control, through long-term agreements.

Under the terms of the deal, Tolaram will initiate a mandatory takeover offer in compliance with Nigerian Exchange regulations.

However, Guinness Nigeria will continue to be publicly listed, maintaining its presence on the Nigerian Stock Exchange.

A statement from Guinness Nigeria highlighted the terms of the agreement, confirming the continued production of the Guinness brand along with Diageo’s locally manufactured ready-to-drink and mainstream spirits under license and royalty agreements.

The transaction is slated for completion in 2025, pending necessary regulatory approvals.

Commenting on the acquisition, Sajen Aswani, Tolaram’s Chief Executive, said: “Our partnership with Diageo to jointly grow Guinness Nigeria underscores our commitment to build on our strong presence and heritage in Nigeria, cultivated over decades of dedication and unwavering confidence in the future of Africa. We take a long-term view on all our investments, and this partnership reflects our optimism on the exciting opportunities that lie ahead across the continent.”

Diageo CEO Debra Crew echoed Aswani’s sentiment “I’m excited to announce our new partnership with Tolaram. Guinness has been Nigeria’s favourite beer for nearly 75 years. Tolaram shares this passion for Guinness and for Nigeria, making them the perfect partners as we continue to grow our business and seek to delight even more consumers in the country.”

This strategic acquisition is expected to bolster Guinness Nigeria’s market position, leveraging Tolaram’s extensive experience in the consumer goods sector to drive growth and innovation.

The partnership aims to enhance the availability and appeal of Guinness and other Diageo products in Nigeria, contributing to the country’s economic development and consumer satisfaction.

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Dangote Refinery Shifts Petrol Production Start to July

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Dangote Refinery

Africa’s largest oil refinery, the Dangote Refinery, has postponed the start of its premium motor spirit (PMS) production, commonly known as petrol, from June to mid-July.

This adjustment was confirmed by Aliko Dangote, President and CEO of the refinery, during a press briefing at the $20 billion facility in Lagos on Monday.

Dangote attributed the change in the production date to minor delays encountered in the final stages of the project.

“We had a bit of delay, but PMS will start coming out by 10 to 15 of July. But then we want to keep it in tank to make sure that it settles. So by the third week of July, we’ll be able to take it into the market,” he stated.

The delay necessitated moving the originally proposed production commencement from June to mid-July.

The refinery will begin production of petrol between July 10 and 15, with supply to local marketers expected to commence from the third week of July.

Backstory and Expectations

Initially, various reports had predicted the refinery’s petrol production would start in June. Standard and Poor’s Global (S&P Global) Commodities Insights analysts had forecasted a later timeline, suggesting production would ramp up in the fourth quarter of this year.

Despite the predictions, Dangote’s team has been aiming for a mid-year start.

Exportation and Domestic Supply

In addition to the upcoming petrol production, the Dangote Refinery has already begun supplying jet fuel and diesel to domestic marketers. Furthermore, the facility recently exported its first jet fuel cargo to Europe.

The inaugural shipment, loaded onto the vessel “Doric Breeze,” departed from the Lekki Free Zone in Lagos on May 27 and is en route to Rotterdam, Netherlands, according to data from S&P Global Commodities at Sea.

Implications for Nigeria

The Dangote Refinery is poised to significantly reduce Nigeria’s reliance on imported petroleum products. Despite being Africa’s most populous country and largest oil producer, Nigeria imports almost all of its fuel due to insufficient refining infrastructure.

The new refinery aims to bridge this gap and enhance the country’s energy security.

Future Prospects

On future prospects, Aliko Dangote said “What we are doing is to be able to export petroleum products to anywhere and compete with any company. By next week, we’ll be producing about ten thousand ppm in terms of diesel, which now what’s happening is that we import about 2 to 3 thousand. We will produce the best.”

As Nigeria anticipates the mid-July start for petrol production, the Dangote Refinery is set to play a pivotal role in transforming the nation’s oil and gas sector, bolstering domestic supply, and enhancing its position in the global energy market.

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