Roundup: Herbert and Elumelu separately acquired additional stakes in Access Holdings and UBA

Article summary

  • Hello and welcome to Nairametrics’ Corporate News Roundup for the week that ended May 20, 2023. 
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  • Let’s now get to the news recap.

It was a rather slow-moving week for Corporate Nigeria compared to the previous weeks. Notwithstanding, there were some important developments. First, there were some major share acquisitions by Herbert Wigwe and Tony Elumelu in Access Holdings and UBA. Also, the Nigerian banking sector lost one of its foremost pioneers. 

Herbert Wigwe consolidates shareholding in Access Holdings

Tengen Holdings acquired an additional 150 million units of Access Holdings’ shares worth N1.49 billion. Nairametrics reported that the acquired shares represented 0.43% of Access Holding’s total outstanding shares and that the acquisition increased Tengen Holdings’ total stake to 802,577,819 units. 

Note that Tengen Holdings is linked to Access Holdings’ CEO Dr Herbert Wigwe. What this means is that the CEO’s indirect holdings in the company have now increased to 1,924,369,017 units, making him the bank’s largest shareholder.

Tony Elumelu’s HH Capital also acquired additional UBA shares

In a somewhat similar development, HH Capital Limited, which is linked to billionaire Tony Elumelu, also acquired 70 million shares worth N560 million in UBA. This represents 0.2% of UBA’s total outstanding shares.

The acquisition increased HH Capital’s share count to 210,843,816 units. It also bumped up Tony Elumelu’s indirect holdings to 2,255,934,184 units of shares, making him the largest shareholder with approximately 7.16% of the total shareholding structure.

UBA’s Group MD also acquired additional shares

As part of the major stock acquisitions last week, UBA’s Group Managing Director Mr Oliver Alawuba, acquired an additional 9.5 million units of the company’s shares worth N80.37 million. This represents 0.03% of UBA’s total outstanding shares. Alawuba now holds a total of 11,093,248 units of shares in UBA. 

Meanwhile, despite the acquisitions, UBA’s share price experienced a 1.7% drop as of Friday, May 19. 

Union Bank’s court-ordered meeting

Union Bank Plc received a court order to hold a meeting to consider and approve a Scheme of Arrangement between the bank and its fully paid ordinary shareholders. The meeting is scheduled for June 13, 2023, and will be held in Lagos. All of the company’s shareholders are encouraged to attend. 

Note that the Scheme of Arrangement involves the acquisition of Union Bank’s outstanding shares by Titan Trust Bank for N7.00 per share. Titan Trust Bank, as the majority shareholder, has informed Union Bank that it will not exercise its voting rights at the meeting.

Neveah Limited’s N20 billion commercial paper programme

Export company, Neveah Limited, announced the upsize of its commercial paper programme from N10 billion to N20 billion. The company had previously issued and repaid a total of N14.54 billion in commercial papers. The company said that the upsize, which was approved by the FMDQ Exchange, reflects its impressive business growth.

United Capital Plc, which was the Lead Arranger of the issuance programme, said Neveah Limited has demonstrated its financial strength and operational improvement, making it a promising choice for funding support.

Hartleys Supermarket’s N5 billion commercial paper programme

The FMDQ Exchange also approved the registration of Hartleys Supermarket & Stores Limited’s N5 billion Commercial Paper (CP) Programme and the quotation of N0.62 billion Series 1 CP. Nairametrics reported that the move would enable the supermarket brand to raise finance for its general corporate purposes from the Nigerian debt markets, providing access to qualified institutional investors and supporting its business operations.

Hartleys Supermarket, known for its commitment to delivering an excellent shopping experience, offers a wide range of products at competitive prices. The registration and quotation on FMDQ Exchange’s platform demonstrate the exchange’s dedication to supporting corporate businesses and deepening the Nigerian debt markets by facilitating the listing and quotation of debt securities.

Nestle is committed to providing related party loans

Nestle Nigeria Plc said it was committed to providing related party support to its subsidiaries and affiliates through loans and payables. 

The company also emphasized its collaboration with various stakeholders, including farmers, suppliers, customers, civil society organizations, and governments, to address challenges and opportunities in the food and beverage industry. 

Note that as of March 31, 2023, the total related party support by the company amounts to N251 billion. The company’s loans are granted at market interest rates and are repayable within one year, supporting working capital needs, capital expenditures, and operational expenses. 

Caverton Offshore Support Group’s 2022 loss

Caverton Offshore Support Group Plc reported a loss After-Tax of N5.16 billion for 2022, compared to a loss of N4.32 billion in 2021. The company attributed the loss to increasing inflation in Nigeria, which reached a 17-year high of 22.22% in April 2023. 

Caverton’s CEO, Mr Bode Makanjuola, acknowledged the challenging year for the company and stated that steps have been taken to mitigate the negative impact. for instance, he said the company is diversifying its business interests within the aviation and marine sectors and exploring more profitable businesses.

Seplat announced dividends  payout

Seplat Energy Plc announced an interim dividend of US3 cents per ordinary share. The dividend will be paid to shareholders whose names appear in the Register of Members as of May 18, 2023. 

Shareholders can choose to receive the dividend in either Naira or US dollars, depending on their holding and currency election options. The dividend payment is scheduled to be made on or around June 16, 2023.

FCMB’s founder dies

Lastly for today’s Corporate News Roundup, the founder of FCMB Plc, Otunba Michael Olasubomi Balogun, passed away last week at the age of 89. Family sources confirmed the news of his death, even though no official announcement has been made. 

Born in 1934 in Ijebu-Ode, Ogun State, Nigeria, Balogun had a diverse background. He studied Law at the London School of Economics, worked in the Ministry of Justice, and later joined the Nigerian Industrial Development Bank (NIDB). He later founded City Securities, a stock broking and issuing house, and went on to establish First City Merchant Bank (now FCMB) in 1983. 

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