AXA Mansard Insurance obtains regulatory approval to reconstruct its shares.

Chidi Emenike 1 Comment

AXA Mansard Insurance Plc has obtained pre-requisite regulatory approvals to reconstruct its shares, from a nominal value of 50 kobo to N2 per share.

This is according to a disclosure signed by the company’s secretary, Mrs Omowunmi Mabel Adewusi, which partly reads: ‘’ Following the Extraordinary General Meeting of AXA Mansard Insurance Plc (“AXA Mansard” or the “Company”) held on Monday, 07 December 2020, the Company secured the approval of its shareholders for the share reconstruction / redenomination of AXA Mansard’s shares from a nominal share value of N0.50 to N2.00.’’

Buoyed by the support it got from its shareholders, the insurance giant further sought and obtained necessary regulatory approvals from the National Insurance Commission (NAICOM) on Monday, 19 July, 2021, and the Securities & Exchange Commission (SEC) on Monday, 16 August 2021, respectively.

Consequently, the shares of the company will be suspended from trading on the Nigerian Exchange Limited (NGX) on Thursday, 09 September 2021, so that the shareholders’ register can be updated with the reconstructed shares. Once this is concluded, the suspension will be lifted and trading on the shares shall recommence.

What you should know:

  • Share reconstruction is just a technical process of reducing the total number of a company’s outstanding shares, by cancelling out shares it does not need. The exercise will increase the nominal value of the company’s share, whilst retaining its market value.
  • AXA Mansard Insurance Plc closed trading on the 7th of September, 2021 with a share price of 88 kobo per share, and a total outstanding shares of 36,000,000,000

 

 

Ellah Lakes set to consider listing its shares on the London Stock Exchange in forthcoming Annual General Meeting (AGM).

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Ellah Lakes Plc has announced that it will be considering listing its shares on the London Stock Exchange (LSE) in the forthcoming Annual General Meeting scheduled to hold on the 8th of October, 2021.

According to a statement signed by the company and sent to the Nigerian Exchange Limited (NGX), the AGM will hold at No. 7 Ibiyinka Olorunbe Close, Victoria Island, Lagos, by 11:00 am prompt,

Other cogent issues to be discussed include;

  • The audited financial statement for the year ended July 31, 2020, and the report of its Directors, auditor, and the audit committee.
  • Board appointments will also be considered and ratified.
  • To fix remuneration of managers and Directors in FY 2021.
  • To elect shareholders’ representatives of the statutory audit committee, among others.

In view of the directives on physical distancing and the restriction on maximum number of people at every gathering due to the COVID-19 pandemic, the meeting will hold by proxy in accordance with section 254 of the Companies and Allied Matters Act 2020 and as approved by the Corporate Affairs Commission.

Additionally, the AGM will be streamed live online, to enable shareholders and other relevant stakeholders who will not be attending the meeting physically to also be part of the proceedings. The link for the live streaming will be made available at least 48 hours before the scheduled date for the AGM.

The register of members and transfer books of the Company would be closed from Monday, September 20, 2021 to Friday, September 24, 2021 (both dates inclusive) to enable the registrar to make necessary preparations for the AGM.

What you should know:

  • As at the period of reporting this, Ellah Lakes Plc is currently trading at N4.25 on the floor of the Nigerian Exchange Limited (NGX).

 

 

Cornerstone Insurance forecasts N417.3 million PAT in Q4 2021.

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Cornerstone Insurance Plc released its earnings forecasts for the fourth quarter of the year (Q4, 2021).

  • Gross premium income is expected to hit N5.5 billion
  • Net claims expense projection of N989.6 million.
  • Net operating income is expected to hit N1.8 billion.
  • Operating expenses projection of N929.3 million
  • Tax is projected at N178.9 million
  • Profit after tax is projected at N417.3 million

See link to results.

AXA Mansard Insurance projects profit of N4.4 billion in Q4 2021.

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AXA Mansard Insurance Plc released its earnings forecasts for the fourth quarter of the year (Q4, 2021).

  • Net premium income is expected to hit N53.5 billion
  • Net claims expense projection of N24.3 billion.
  • Underwriting profit is expected to hit N11.97 billion.
  • Operating expenses projection of N9.21 billion
  • Tax is projected at N1.7 billion
  • Profit after tax is projected at N4.4 billion

See link to results.

Union Diagnostics and Clinical Services Plc. concludes process to delist shares from the Nigerian Exchange Limited.

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Union Diagnostics and Clinical Services Plc, an indigenous medical diagnostic firm, has concluded various statutory processes required to delist its shares from the Nigerian Exchange Limited (NGX).

This is according to a disclosure signed by the company’s secretary, Samuel Iroye, which partly reads: ‘’We write to inform you of the conclusion of the Scheme of Arrangement and the intent of the company to be delisted from the Nigerian Exchange Limited (the Exchange or NGX) effective from the date as approved by the Exchange.’’

As part of the statutory process, the firm revealed that it had earlier obtained its shareholders’ approval to delist the company’s shares during the last Annual General Meeting and Court Ordered Meeting held on the 25th of January, 2021.

Furthermore, the firm revealed that it had obtained all relevant regulatory approvals from the Securities Exchange Commission (SEC), the Nigerian Exchange Limited, Federal High Court, Federal Competition and Consumer Protection Commission (FCCCP) to embark on the delisting exercise.

Consequently, all shareholders (other than Lifecare Partners Limited, Akinniyi Ambrose Olusola and Akinniyi Elizabeth Abimbola) are enjoined to contact the Registrars for their payoff warrants.

Recall that in a bid to make the exit from the NGX seamless, Cedar Advisory Partners Limited, an investment firm with a niche in the healthcare business waded in to buy out 39.62% minority stakes in Union Diagnostic, conferring the firm the status of a majority shareholder in the latter. Cedar Advisory paid 35 kobo each for about 1,407,855,051 ordinary shares (39.62% stake), translating to about N492.75 million.

Subsequently, the minority shareholders of Union Diagnostics accepted the N492.75 million offered by Cedar for their shares, thus making the exit of the organization easier.  In addition, trading in the shares of the company was placed on full suspension earlier in March this year, to enable the parties involved determine shareholders whose names are in the register of members on the effective date and finalize the delisting process.

What you should know:

  • Union Diagnostic and Clinical Services Plc. (UDCS Plc.) is a leading indigenous and homegrown company in the medical diagnostics and healthcare sector with a deep knowledge of the Nigerian terrain owned by over ten thousand Nigerians and offering full and comprehensive services in diagnostic medicine since 1994 with capacity for conducting services ranging from Sonology including Colour Doppler imaging, X-ray imaging, Electrocardiography, Endoscopy, Computed Tomography (CT Scan), etc.
  • It was listed on the NGX in 2007 at N3.00 per share, with an ambition to become a leading diagnostic firm across the Africa continent.
  • Cedar Advisory Partners Limited is currently the majority shareholder in Union Diagnostics, holding about 59.66% of the latter’s total shareholding.

 

 

Despite decreased earnings, Stanbic IBTC declares improved interim dividend of N12.96 billion.

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Despite recording a slump in most of its key financial metrics for the half year period ended June 30, 2021, Stanbic IBTC Holdings Plc has declared an improved interim dividend of N1.00 per ordinary share of 50 kobo each.

The proposed interim dividend indicates a gain of about 150% when compared to the amount declared in the corresponding period of last year (HY 2020: 40 kobo). It is pertinent to note that the declared dividend will be paid on each of the outstanding 12,956,997,163 ordinary shares of the bank, amounting to N12.96 billion.

The banking giant in a recent notice filed with the Nigerian Exchange Limited (NGX), revealed that the dividend which is subject to deduction of appropriate withholding tax and regulatory approval, will be paid to shareholders whose names appear in the Register of Members as at the close of business on Monday, September 20, 2021.

The dividends will be disbursed electronically to qualified shareholders on Wednesday, September 29, 2021. Qualified shareholders in this context means shareholders whose names appear on the company’s register as at the aforementioned date, and who have completed the e-dividend registration, mandating the Registrar to pay their dividends directly into their Bank accounts.

While the Register of Shareholders will be closed from September 21 to September 28, 2021, Qualification Date has been scheduled for Monday, September 20, 2021.

 Stanbic IBTC Half Year Review

Recall that Stanbic IBTC had earlier released its financial results for the half year period ended June 30, 2021. The bank’s gross earnings for the period under review stood at N93.6 billion, compared to N126.6 billion recorded in corresponding period of 2020, indicating a decline of about 26.1%.

The bank’s Profit before tax also slumped by 52.9%, from N52.41 billion recorded in HY 2020 to N24.71 billion. Profit after tax also declined by about 50.13% to N22.54 billion. Consequently, earnings per share (EPS) slumped to N1.92K, down from N4.19K recorded in the comparable period in 2020.

What you should know:

  • An interim dividend is a type of dividend that is declared and distributed by a company to its shareholders prior to the determination of final profit position for the financial year. Before interim dividends are paid, the company’s financial statements will also be audited.
  • Stanbic IBTC closed trading today 6th of September, 2021 with a share price of N39.20.

Half Year 2021: Stanbic IBTC suffers 50% decline in profit amid slump in revenue.

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Stanbic IBTC Holdings Plc released its interim financial results for the half year period ended 30 June, 2021.

  • Gross earnings for the period totalled N93.6 billion. (-26.1% YoY)
  • Net interest income was N32.9 billion. (-12.4% YoY)
  • Net fee and commission income of N41.3 billion. (+18% YoY)
  • Operating expenses totalled N55.4 billion. (+14.1% YoY)
  • Profit for the period was N22.54 billion. (-50.1% YoY)
  • Earnings per share of N1.92 Vs N4.19 YoY.
  • An interim dividend of N1 per share was declared.

See link to results.

Arise B.V invests additional Tier-1 capital of $75m in Ecobank.

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Arise B.V, a leading African investment company, has made Additional Tier 1 (AT1) investment of about $75 million in Ecobank Transnational Incorporated (ETI)-the parent company of the Ecobank Group.

This is contained in a statement signed by ETI’s Head of Corporate Communications, Adenike Laoye, and sent to the Nigerian Exchange Limited (NGX).

According to the disclosure, the recent investment is Basel III compliant and is the first AT1 instrument to be issued by Ecobank Transnational Incorporated. In light of this, the financial giant described it as; ‘’a landmark transaction in the sub-Saharan Africa region.’’  The bank also revealed that the investment will help optimize and improve its Tier-1 capital by $75m.

This recent investment follows an earlier ground-breaking $350 million subordinated Sustainability Eurobond issued by ETI in June 2021, which was very well received by international investors across diverse continents. The Eurobond has since been listed on the London Stock Exchange as Tier 2 capital.

What will the additional capital be used for?

Commenting on what it intends to use the funds for; the pan-African banking group revealed that the additional investment would be deployed to meet its general corporate obligations which include loan growth and strengthening the capital buffers of profitable subsidiaries in two of its major markets – Francophone West African and Anglophone West Africa.

What they are saying:

 Commenting on the recent development, the Group Chief Executive Officer of ETI,  Ade Adeyemi said: ‘’This investment by Arise is a testament to continued support and confidence from our shareholders; their commitment to, and belief in our strategy which we remain focused on executing to deliver value to our shareholders and excellence to our customers. Indeed, in addition to improving our double leverage ratio, it is also a good boost for the firm and its staff”.

On the other hand, the Chief Executive Officer of Arise, Deepak Malik said: ‘’ETI is our primary banking investment in Francophone West Africa and Anglophone West Africa. We are very supportive of ETI’s growth ambitions and its ability to increase financial services to Agri, SMEs & retail customers. Our investment will also strengthen the balance sheet of ETI and provide additional risk capital”.

What you should know:

  • ETI had earlier in June this year, raised $350 million from the issuance of its Tier-2 Sustainability Notes. The notes which will mature by June 2031, has a call option in June 2026 and was issued with a coupon rate of 8.75% with interest payable semi-annually in arrears.
  • Arise B.V. (‘’Arise’’) is a leading equity investor in financial institutions in Sub-Saharan Africa and one of ETI’s existing major institutional shareholders. It currently manages assets in excess of $960 million in over 10 African countries, and has indirect banking exposure to over 33 countries in Sub-Saharan Africa.