The Nigerian Stock Exchange (NSE) yesterday approved the merger of Dangote
Cement Plc and Benue Cement Company Plc (BCC) – thus boosting the Dangote
Group’s efforts in consolidating its cement production subsidiaries.
NSE’s approval came on the heels of earlier approval already obtained from
the Securities and Exchange Commission (SEC) last week for the deal to be
struck.
The pact would involve the infusion of BCC, a company majorly owned by the
Dangote Group into Dangote Cement Plc. The merger will result in the listing of
Dangote Cement with a valuation of N2.13 trillion on the Exchange, while BCC
shares will be delisted when the process is completed.
According to the scheme of arrangement for the merger, shareholders of
BCC will receive one new share in the expanded company for two shares of
BCC they currently own. The shares of BCC closed at N64.40 per unit at the
stock market yesterday. With about 3.916 billion shares, the market capitalization
of the company stood at N252 billion, which is among the top 10 most capitalized
on the Exchange.
Source: thisday
Date: 08/09/2010
Wed - Sep - 2010
FG considers guarantees for investment in power se
As
US, Europe, China, others see Nigeria as investment haven •Aganga says public
debt stood at $29.6 billion, end of June 2010 The Federal Government is
considering providing risk mitigation in the form of guarantees to attract
capital to some critical sectors of the economy, especially power and small and
medium scale enterprises (SMEs), Olusegun Aganga, minister of finance has said.
The minister also announced that Nigeria’s public debt stood at $29.6 billion
as at the end of June 2010, with external debt around $4.3 billion.
“I
am currently in the process of establishing a Sovereign Risk Asset and
Liability Management Unit within my office, with assistance from the World
Bank, that will advise the government on the effective (and appropriate) use of
its balance sheet to provide such support measures where there are limited
alternatives for stimulating private sector participation. The desk will also
manage relationships with investor credit rating agencies,” Aganga told
investors at a road show in London at the weekend.
The
Federal Government is again providing some credit enhancement to the new
entity, the Bulk Purchaser which is owned by the BPE and the Ministry of
Finance which had been established to procure power through Power Purchase
Agreements (PPAs) from the successor generation companies to be created from
PHCN and IPPs on behalf of the successor distribution companies as another
incentive to stimulate private investment in power generation.
He
said the Government recognizes that a credit worthy counter-party is required
to enter into these PPAs in order to encourage immediate private sector
investment. “My ministry, with the support of the World Bank, is in the process
of reviewing the various options through which to facilitate this”, he said. Source:
(Businessday, 07/09/10)
Tue - Sep - 2010
Dangote Cement N2.13trn deal excites investors,
As
NSE Quotation Committee meets today Ahead of today’s decision by the Quotation
Committee of the Nigerian Stock Exchange (NSE) on the Dangote Cement N2.13
trillion deal, the stock market was in a frenzy yesterday following
BusinessDay’s report on the development.
Excited
investors and stock brokers on the Nigerian Stock Exchange (NSE) described the
plans for listing/merger by Dangote Cement with Benue Cement as a good thing coming
to the Nigerian bourse. Analysts also believe that the colossal listing would
impact on the NSE. Speaking to BusinessDay yesterday on the development,
Boniface Okezie, president of the Progressive Shareholder Association of
Nigeria (PSAN) said the plan is good for the market and investors.
According
to him, investors would be happier if the company is listed at a fair value
that equates the productivity level of the company. “Benue Cement Company is
the highest among the quoted cement companies on the Nigerian Stock Exchange in
terms of price and returns on investment. That is a big plus,” Okezie said. (Source: Businessday, 07/09/2010)
Tue - Sep - 2010
Money Market
Wema, Unity banks strategise to beat recapitalisat
As countdown to
the Central Bank of Nigeria (CBN) September 30 deadline to Wema and Unity banks
to recapitalize or face liquidation draws closer, the two financial
institutions seem to be taking strategic measures that will lift them off-the
regulator’s hook. The two banks had escaped the CBN hammer after they failed to
meet up with June deadline initially pronounced by the apex bank.
Wema Bank which
initially planned to raise N15 billion had to cut the amount by 40 per cent to
N9 billion and plans to sell some of its bad debts to the Asset Management
Corporation of Nigeria. Bloomberg
quoted the bank’s company Secretary, Oluwole Ajimisinmi, as having
said in a phone interview from Ilorin, Kwara State that "Wema Bank will
probably reduce the amount of capital it targets to raise to N9 billion from
N15 billion". Wema Bank of Nigeria has already placed N9 billion worth of
new shares with investors to boost the bank’s liquidity ratio and increase its
branch network.
Source: the Nation
Date: 08/09/2010
Wed - Sep - 2010
Rising demand for forex puts pressure on naira
For two
consecutive day’s running, dealers in the forex mar-ket kept raising their
demand profile for the dollars. On August 30 which was the last trading day for
the month, buyers staked a whooping $390 million worth of forex. This was
repeated on September 6 when $400 million forex was sold. Both transactions
have put pressure on the naira as it now exchanges for N149.29/$1 as at Monday.
Meanwhile, on
August 16, trading under the Wholesale Dutch Auction System (WDAS), saw the 24
banks that participated at the auction demanding for $517 million, which was
about five months high. There has been significant increase in the demand for
forex, which some traders trace to strong demand from importers, especially for
oil imports. It is also said that foreigners are repatriating profit.
But a week ago,
the high demand slowed as the apex bank, on August 23 merely sold $200 million
with promises to bridge the gap at a later auction. The monetary authority was
also far from meeting market demand on August 25 where $250 million worth of
forex was sold to buyers.
Source : the
Nation
Date:
08/09/2010
Wed - Sep - 2010
FG to issue N80bn treasury bills next week
The Federal Government has concluded plans to raise N80bn ($533m) in 91-day, 182-day and 364-day treasury bills next week, according to the Central Bank of Nigeria.
According to a Reuters report on Thursday, the apex bank said it will issue N20bn in 91-day bills, N30bn in 182-day bills and N30bn in 364-day bonds, using the Dutch Auction System on Thursday.
In a related development, the Federal Government has concluded plans to raise $500m in bonds between September and October to finance the growth of the economy.
The Minister of Finance, Mr. Olusegun Aganga, had said this at a press briefing in Lagos last Friday.
The Federal Government issues treasury bills regularly as part of monetary control measures to curb inflationary growth and help banks to manage their liquidity.
Source: the Punch
Date: 03/092010
Fri - Sep - 2010
Real Estate
Estate surveyors seek partnership with EFCC over p
THE Nigerian Institution of Estate Surveyors and Valuers (NIESV) has urged the Economic and Financial Crimes Commission (EFCC) to partner with it on the probe of ill-gotten property by individuals so that the right value could be attracted to them.
Source:NigerianCompass 9/6/2010
Wed - Jun - 2010
Bank reforms cripple real estate- REDAN
The National President of REDAN, Chief Olabode Afolayan said this when he visited Minister of Land, Housing and Urban Development, Mr. Nduese Essien in Abuja recently.
He lamented that the present reforms have weakened abilities of banks to provide essential services, especially the real estate which requires huge capital injection.
“`Sincerely, we had looked at the banking reform as a thing that would open up lots of opportunities for investors in the real estate sector, but honestly, in the last couple of months, it has been a very unfortunate situation. The Banks have not impacted on the real estate sector in the last six months. They have not been able to give funding. Even the bank guaranty they used to give in the past has also stopped. When the reform was put in place, we had thought it would be a holistic approach at reforming all sectors of the economy.
Source: DailyTrust 1/6/2010
Tue - Jun - 2010
Nine New LASG Estates in Lekki
As part of the plan of the Lagos State Government to decongest metropolitan Lagos towards the North West, South West and Lekki axis, fourteen new schemes are to be developed in different parts of the state.
Mr. Gbenga Ashafa, the Permanent Secretary of the Lagos State Lands Bureau has said that as part of the plan of the Lagos State Government to decongest metropolitan Lagos towards the North West, South West and Lekki axis, fourteen new schemes are to be developed in different parts of the state.
Nine of the schemes are to be sited in the Lekki axis, while five will be in the Badagry division and the last one in Ikorodu division. The Lekki Schemes are all located after Ajah towards Epe. Fairmont Garden Scheme, Rainbow Mixed Development Scheme, Kings Court Residential Scheme, CBD/Mixed Development Grand View Mixed Development Scheme, Ibeju Mixed Development Scheme, Savannah Mixed Development Scheme, Pearl Scheme and Queens Palm Mixed Development Scheme are the grand sounding names of the new estates. This is probably because they are planned as high-end and middle-end estates
Source:CastleWeekly 18/5/2010
Tue - May - 2010
Private Equity
Jonathan: FG will protect investments in Nigeria
President Goodluck Jonathan has welcomed the use of gas to fuel various types of vehicles, stating that this will help to diversify the country’s energy sources, and strengthen government’s planned deregulation of the oil industry.
Jonathan stated this while speaking to a delegation of NIPCO PLC, led by Mr. Ramesh Kansagra, at State House, yesterday. “Government will do its best to protect investments in Nigeria. We will not change our laws midway, in order to encourage investors for long-term presence in the country”, he stated.
soruce: daily trust(20/07/2010)
Tue - Jul - 2010
NSE creates special private placements' listing wi
There are strong indications that the Council of The Nigerian Stock Exchange (NSE) has approved a special window for listing new issues done through private placements recently.
A capital market source close to the NSE said the special window is coming on the heels of the re-designation of the NSE’s Emerging Market as Alternative Investment Market/Private Placement Exchange (AIM/PRIPEX).
Source:FinancialStandardNews22/2/2010
Mon - Feb - 2010
MTN, Globacom, 11 Others Express Interest in Nitel
A week after a 60-day ultimatum was issued to the board of Nigerian Telecommunications Limited (NITEL) to find a core investor, 11 firms have expressed interest in the acquisition of at least 75 per cent equity in the company. The Bureau of Public Enterprises (BPE) disclosed yesterday that it had received Expressions of Interest (EOIs) applications from MTN and Globacom.
Source: Thisday 02/09/09
Wed - Sep - 2009
Foreign Exchange Market
Reserves:CBN May Reduce Euro Holdings
The Central Bank of Nigeria (CBN) may reduce its euro holdings in the nation’s foreign reserves as a cushion against the depreciation of that currency.
This development came hours before the Financial Services Regulation Coordina-ting Committee (FSRCC) – a committee of all the regulators in the financial services sector, barred bank shares for margin trading.
Bloomberg news quoted CBN’s Director, Reserves Management Department Lamido Yuguda as having said in Abidjan, Cote d’Ivoire, that the CBN might reduce the amount of euros it holds in its reserves if the European currency’s decline continues.
Source:Thisday 27/5/2010
Thu - May - 2010
Naira weakens as banks snap up dollars
The naira weakened to 152.40 to the U.S dollar on Tuesday, from 151.75 previously, in the interbank market after heady buying of dollars by some banks, traders said.
"A couple of banks are buying up dollars for reasons we don't know and this has driven the rate beyond market resistance level," one dealer said.
"We are completely in the dark on the basis for the prevailing exchange rate at the interbank."
Source:Next 19/5/2010
Wed - May - 2010
ABCON seeks extension of deadline for BDC licence
The Association of Bureaux De Change Operators of Nigeria (ABCON) has requested an extension of the deadline for application of bureaux de change (BDCs) licence.
It would be recalled that the Central Bank of Nigeria (CBN) recently called for application for license for class “A” and “B” BDCs and gave two weeks for interested investors to meet the plethora of requirements.
