Thread by @ugodre

Hello Everyone, welcome to @Nairametrics Corporate News Roundup for the week ended August 11, 2018. This thread is made possible by @BluechipTechNG

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@Nairametrics @BluechipTechNG Let me use this opportunity to welcome our new followers and everyone reading this thread for the first time. This is the most comprehensive roundup of news from corporate Nigeria.
We do this every Sunday 10pm. Our Newsletter subscribers also get this directly in their mailbox.

It was another busy week for Corporate Nigeria and so we believe we have a loaded package for you all.

We begin.

1. Duet Private Equity (DPEL), a private equity firm, announced during the week that it has acquired a significant stake in Ajeast Nigeria, the Sub-Saharan Africa subsidiary of multinational beverage company, AJE Group.

AJE Group is the manufacturer and distributor of the Big Cola brand in Nigeria, a drink that has been making inroads in the competitive beverages market. DPEL invested over $50 million in the acquisition; a significant share will be allocated as growth capital.

The company claims that the investment will be used to expand Ajeast’s presence in Nigeria.

This guys must have a very effective distribution network especially when you consider how ubiquitous their drinks are. Can they beat Coca Cola? Hardly, but can they be number two?

2. Nigeria’s two major listed palm oil producers, Okomu Oil Palm and Presco Plc, may post lower full-year results due to an increase in imported palm oil. Analysts at ARM disclosed this in a research note recently.

Both firms had bumper 2016 and 2017 results but recent results (Half year 2018) have seen revenues dip considerably. Nigeria faced a currency crisis in 2016 and 2017, coupled with the ban on importation of about 41 composite items.

These helped Okomu and Presco maintain footholds in the local demand market as foreign imports fell. However, with the exchange rate stable and imports rising, both companies are facing competition from importers of palm produce and taking a hit.

For Okomu Oil, Q1 and H1'18 results show an increase year on year, 2nd quarter results show a slight dip. H1'18 results show that revenue increased from N12.4b in 2017 to N12.9b in 2018. Q2'18 results,however, show a dip in turnover, which fell from N6.5b in 2017 to N5.5b in 2018

Presco’s results take a similar pattern, with both H1 2018 and Q2 2018 results showing a decline. H1 2018 revenue fell from N12.8 billion in 2017 to N11.5 billion in 2018. On a quarterly basis, revenue fell from N5.6 billion in 2017 to N5.0 billion in 2018.

3.The Nigerian Stock Exchange, during the week, launched X-Pay e-payment platform for the Exchange. This will enable users to conveniently make payments for products, services, events and trainings offered by the bourse.

With features like invoice payments, intuitive products display, and dynamic search functionality, X-Pay is a value-added service that accepts VISA, MasterCard, Verve and UnionPay credit and debit cards.

X-Pay basically allows investors to buy data such as Real-time feeds, Share Price information, and NSE cloud services, among others, directly from the Nigerian Stock Exchange. NSE needs to fix their website though, it's horrible.

4.Just when we thought that Taxify and Uber were one too many, Taxigo joined Nigeria’s ride-sharing market. Taxigo is said to be a bespoke taxi platform that connects licensed taxi drivers and companies, as well as private drivers.

The owners of the company claim that they want to disrupt the ride-sharing market, which is currently dominated by both Taxify and Uber. How they intend to do this?

According to Godswill Nkwusi, co-founder of the platform “Pricing with Taxigo is not standard, as we don’t have any pricing models. Every taxi company in our system and every driver, can make their own business with prices they think are adequate at the moment.

No driver is under pressure at all. If he wants to get more money for a trip, he can choose from 10 different price-levels he has set for himself and can switch in between them in seconds. The good thing is that this will not affect passengers in anyway because they have freedom

to choose the taxis they ride based on price and quality, among other factors they can see from the phone before they engage drivers’ services. “Contrary to what it may seem, the app makes the client king, as he gets to choose from a wide variety. The Client can also compare base

tariffs and tariffs per time and kilometre. He can also calculate the final cost of a trip even before he engages the driver to avoid surprise charges. Another reason for drivers to love Taxigo is its quite low commissions. If Uber takes 25% and Taxify 15% in Lagos from drivers

, then Taxigo is totally happy with 10-14%.” EOQ. Sorry if that was a long quote but I had to put it out there for you guys to get the context. This seems like a pretty decent business model. Drivers getting to bid for passengers.

Taxigo originated from Estonia, the home country of rival Taxify.

5. Mines, a fintech start-up, announced that it has closed a Series A round of $13m led by The Rise Fund, a global fund managed by TPG Growth.

Other companies who participated in the deal include Velocity Capital, Western Technology Investments, First Ally Capital, X/Seed Capital, NYCA Partners, Persistent Capital, Singularity Investments, Trans Sahara Investments & the Bank of Industry. Mann this is a heavyweight list

Mines plans to use its investment for talent acquisition, continued growth in Africa, and expansion to South America & South-East Asia. Mines provides a credit-as-a-service digital platform that enables institutions in emerging markets to offer credit products to their customers.

The company claims that you do not need a smartphone for their services. Apparently, Mines draws on an array of data to match people who need credit with lenders or merchants, basically servicing just about any industry that wants to provide a credit facility.

According to the company “By mining high-volume data like phone records, bank records, and payment transactions in real-time, Mines can instantly assess credit risk in markets that lack robust credit bureau infrastructure.

It then integrates its risk models with identity, origination, payments, loan lifecycle management, and customer service to form a holistic platform

The net result is a seamless user experience where partners’ customers can apply for and receive a loan in less than 60 seconds or make instant purchases with virtual or physical credit cards.”

6.The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof Umar Garba Danbatta, reportedly decreed that the much awaited MTN listing on the Nigerian Stock Exchange must take place on or before May 2019.

In making this pronouncement, he referred to the settlement agreement reached between the regulator and MTN in 2015. MTN is also reported to have paid about N165 billion, which is about 60% of the N330 billion fine.

According to him, “if they don’t list on NSE by end of 2019, they will be in breach of the conditions reached for the payment of the fine and it would attract regulatory action.”

SEC also applied more pressure on MTN, when the Acting DG, Mercy Uduk, revealed that MTN was yet to apply to the commission for an IPO and asked MTN to “file first”.

7. As Nigerians await the listing of MTN shares on the Nigerian Stock Exchange, the GSM giant released its 2018 half year results. Figures from the results show that the number of new subscribers on its network increased by 2.9 million during the period.

This put its total number of subscribers at 55.2 million in the country. This implies that its subscribers in the country account for an estimated 25 percent of the total subscriber base of 223 million as at June 2018.

The report also shows a surge in the company’s data revenue by 63.7 percent, voice revenue increased by 17.3 percent, data traffic also increased by 52 percent. For the 2018 half year, MTN Nigeria reported a revenue of 21 billion rands (N567 billion), an increase of 17 percent.

8. Still on Danbatta, who we heard a lot from during the week, he also said that the five infrastructure companies (Infracos) which hold licenses to drive the broadband penetration across Nigeria will enjoy N23 billion subsidy as soon as they start to rollout.

He said the N23bn subsidy, already approved in the NCC 2018 budget, would make it easy for the infracos to rollout and increase broadband penetration, and that the National Executive has approved about N145 per meter to be charged as right of way for states.

According to him, “There is more to achieving the maximum target of 30% broadband penetration by 2018 ending. But let me say without fear of contradiction that we have so far surpassed the minimum target of penetration;

we are presently at 22%, according to the International Telecommunications Union (ITU), and we are doing everything within our power to make the penetration more ubiquitous.”

9.We also learnt last week that the apparent delay in the acquisition of 9mobile by Teleology was due to a N7 billion owed by the former to Nigerian regulators.

Danbatta also made this revelation during the week, stating that, “9mobile owed N12b Annual Operating Levies (AOL) for two years, numbering fees of N1b and spectrum fees of N2.3b and on paying the spectrum fees, half of the AOL and half of the numbering fees,

the NCC transmitted a letter of ‘No Objection’ to allow the transfer of shares to United Capital from Emerging Markets Telecommunications Services (EMTS), the original owners of Etisalat Nigeria...

As soon as they meet the next conditions and the technical evaluation of Teleology is concluded, we will again transmit the final approval letter of ‘No Rejection’ for transfer of shares from United Capital to Teleology.” EOQ

Nairametrics understands that Teleology has secured the balance of the purchase consideration and is awaiting regulators’ go-ahead for the takeover.

This is @Nairametrics Corporate News Roundup BTU by @BluechipTechNG

10. Honeywell Group officially launched its new accelerator and investment vehicle, Itanna. The vehicle is led by Tomi Otudeko, Head, Innovation and Sustainability for Honeywell Group and Director of the new venture.

According to the company, Itanna will roll out four-month innovation programmes for tech-enabled Nigerian start-ups from its newly built Enterprise Factory in Lagos, with its pilot cohort of start-ups receiving USD $25,000 each in investment from Honeywell Group.

Itanna will be launching with “four cohort companies” Accounteer – which provides online accounting services for SMEs across Africa, KoloPay – a cashless target savings mobile and web application, Tradebuza –

an online platform for managing and brokering commodities sourcing and outgrower scheme, and PowerCube – providers of affordable power supply using renewable energy. Itanna will also be investing in more developed tech start-ups looking for growth capital.

Through the direct investment scheme, the Itanna team will support investee companies to scale by leveraging on Honeywell Group’s network and industry expertise

11.The Consumer Protection Council (CPC) and the National Agency for Food and Drug Administration and Control (NAFDAC) last week shut down the Victoria Island outlet of American doughnut and coffeehouse chain company, Krispy Kreme Confectionary.

The shutdown was as a result of the startling discovery upon inspection, that the doughnut company extended the expiration date of its doughnut mix and fillings. The inspection of the facility was led by the Director General of CPC, Babatunde Irukera.

He said Krispy Kreme printed a white sticker which says “Best Before 30/09/2018” and imposed such on the original date to conceal it. Nairametrics confirmed that the Ikeja City Mall outlet of Krispy Kreme Confectionary also remains closed.

According to a staff of the company who did not want to be identified, the Ikeja outlet gets supplies from its Victoria Island outlet and since it has been shut down, business ground to a halt. Too bad, all those jobs and it's a Salah month for that matter.

12.During the week, the new owners of the Rivers Vegetable Oil Company Limited (RIVOC) revealed that they would "raise the bar” for the vegetable oil industry with the acquisition

of relevant local and international certification from accreditation bodies that would ensure quality that meets international standards. Recall a few days ago, the United Kingdom rejected a large consignment of vegetables and other edibles exported from Nigeria.

Strides acquired RIVOC in a multi-billion naira deal signed in Lagos, by United Capital Trustees, on behalf of a consortium of four banks. Strides Group is the owner of Strides Energy and Maritime Limited (SEML), which operates in Nigeria’s oil sector.

The company offers dredging services, petroleum terminal tank farm construction/rehabilitation services, and offshore oil & gas pipeline construction/installation etc.

13. Looks like a lifeline has been extended to Nigeria’s oldest Cement company, Nigercem. Foreign investors from the United States (U.S) have announced plans to support the core investor and CEO, Ibeto Nigeria Limited, Chief Cletus Ibeto and Ebonyi State govt to revive Nigercem.

The team of investors, in collaboration with Ibeto Nigeria Limited, embarked on an assessment visit to the premises of the cement firm as part of the rigorous process of actualizing the listing of Ibeto in the United States.

The billionaire owner of the Ibeto Group, Chief Ibeto, said that the delegation was on a self-assessment tour of the firm. Ibeto also revealed that another team of Chinese contractors were in the state 3 weeks ago to finalize arrangements on the revitalization of the factory.

According to Ibeto, very soon, production would commence in Nigercem with the production of 6,000 metric tons of cement per day. By the way, this is not the first time we are hearing this.

And btw, watch out this week for the concluding series of our Corporate Story, Cement Wars

14. Last week, the Management of the Nigeria Sovereign Investment Authority (NSIA) announced the payment of the gross sum of $417.46 million to the Nigeria Bulk Energy Trading Company Plc (NBET), following the expiration of the 4-year investment term.

The returned fund consists of the principal sum of US $350 million allocated to the NSIA from the proceeds of the $1 billion Eurobond issued by the Federal Government of Nigeria in July 2013 under a fund management agreement,

and the sum of US $67.46 million (net of fees) as interest and earnings over the investment period. It is always a good thing when corporations like the NSIA redeem their debt repayment pledges. Well done Uche Orji

15. Still on debt repayment, the Managing Director of First Bank of Nigeria Plc, Adesola Adeduntan, stunned investors after the bank redeemed its $300 million subordinated bond which was to mature in 2020.

According to the bank, it had significant foreign currency liquidity that enabled the bank to pay off the bond, without having to issue a new one. The repayment has no impact on the bank’s Capital Adequacy Ratio, as the bank had built up sufficient foreign currency reserves.

The Capital Adequacy Ratio, CAR, is a ratio of a bank’s qualified capital (equity) as a percentage of its total risk assets (money lent out by the bank).

Man, to think some banks have been looking for Capital for years First Bank is refunding.

16. Barely two months after a non-Executive Director of Seplat Plc, Macaulay Agbada Ofurhie, sold off 900,000 unit of his Seplat shares, wife of Dr. A.B.C Orjiako, Henrietta Orjiako, through Pursley Resources Limited, acquired 900, 000 units of the company’s shares.

The company confirmed this via a notification to the Nigerian Stock Exchange (NSE). The 900,000 units of shares which amount to N585 million (based on the prevailing price of the company stock),

give Pursley a voting interest of 0.15% (based on Issued Share Capital of 588,444,561). Ofurhie, had sold the shares on June 11, 2018, at N711 per share, amounting to N639 million.

17. As Nigerians still ponder on the fate of the newly created Nigerian Air, Ethiopian Airlines has rekindled its attempt to expand its operations in Nigeria. The carrier is among several parties that have applied to run the new proposed national carrier.

Chief Executive Officer, Tewelde Gebremariam disclosed this during the week stating that, “We are among a small group with an interest in establishing a national carrier (in Nigeria)…we do not know the results (of the tender), though we are frontrunners.” EOQ

The airline, in August last year, submitted a bid for Arik Air, one of two airlines being run by the Asset Management Company of Nigeria (AMCON). Ethiopia later pulled out of the discussions, due to what Tewelde described as financial and legal complications.

Ethiopia has been on an expansion drive around Africa, with it having stakes in several airlines across the continent. In July, it disclosed that it was in talks with the Eritrean Govt. to take a stake in their airline. Relations with both countries have thawed in recent times.

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