Good morning and welcome to this week’s edition of Bulls and Bears. Bulls and Bears is a weekly thread i do on the NGX and US equity space. If you have any questions feel free to share. 

Starting with the NGX. The All Share Index gained 1.19%. The index measures the average performance of stocks on the exchange.

Golden Guinea Breweries was the best performing stock for the second week running. Last week, it gained 60% to close at N8.64. Prior to that, it rose by over 45.9%

Secure Electronic led the losers. The stock declined by 22.86% to close at 54 kobo.

FBN Holdings Plc has obtained the approval of the Securities and Exchange Commission (SEC) to extend its  rights issue by 18 days. Consequently, trading in the company’s rights will now close on Monday, 30 December 2024. 

The rights issue opened on Monday, 4 November 2024 is for 5,982,548,799 ordinary shares of 50 Kobo each at N25.00 per share, on the basis of 1 new  share for every 6 shares held as at the close of business on Friday, 18 October 2024.

Seplat closes MPNU acquisition

 To the biggest news item last week. Seplat announced the closure of its acquisition of MPNU. It also held an analyst call on the same day. 

Total consideration at closing $800 million 

 $128 million deposit  was paid in 2022 at first SPA signing o 

Final cash consideration payable to ExxonMobil at closing is $672 million 

Funding

The $672 million payable on closing the transaction will be funded by:

• $350 million drawn under the RCF

• $300 million new 3 year Advance Payment Facility with ExxonMobil, and

• $22 million balance sheet cash

No new equity (shares) will be required 

Detailed guidance for the enlarged Group in 2025 will be provided with Seplat’s full year 2024 results, expected in late February 2025.

Aradel Holdings Plc  has entered into an agreement to acquire 5.14% equity interest in Chappal Energies Mauritius Limited.

Chappal is an energy company focusing on investments in deep value and brownfield upstream opportunities within Africa.

Caverton enters into agreement with the Nigerian Navy

Caverton Marine Limited, a subsidiary of Caverton Offshore Support Group Plc, has signed a  concession agreement with Naval Dockyard Limited.

The agreement focuses on the management, revitalization, and leasing of the Glass Reinforced Plastic (GRP) Warehouse, aiming to enhance local production capabilities in shipbuilding and marine manufacturing.

Access Moves

The firm was in the news last week, following moves by its banking subsidiary Access Bank and Access Bank UK

Access Bank which has entered into an agreement to acquire a 100% stake in Bidvest Bank. Bidvest is a top 10 bank in SA, so this is a big deal. The deal is expected to close in H2 2025, subject to regulatory approval.

Its UK subsidiary, Access Bank UK has established a subsidiary in Malta. 

MTN Nigeria raised N72.18 Billion via the issurance of its Series 13 and 14 Commercial Paper issuance under the Company’s N250 billion Commercial Paper Issuance Programme (the ‘CP Issuance’). 

It aimed to raise N50 billion, but the offer recorded a 144% over subscription with N72.18 billion issued. 

The 180-day and 270-day CP were issued at yields of 27.50% and 29.00%, respectively, with an issue date of Friday, 29 November 2024. 

Proceeds will be used to support short-term working capital requirements.

Nigerian Breweries to allot rights issue shares

Nigerian Breweries Plc  has received the clearance of the Securities and Exchange Commission for the allotment of 20,706,894,542 ordinary shares of 50 Kobo each at ₦26.50 Kobo per share under its recently concluded Rights Issue. 

The Rights Issue was 91.59% subscribed. The company’s registrars, First Registrars & Investor Services Limited will credit the CSCS account of successful allottees who have indicated their CSCS account details on their respective acceptance forms with the shares allotted to them not later than Wednesday, 18th December 2024. 

Surplus subscription monies would be returned by First Registrars no later than Wednesday, 18th December 2024, being five (5) business days after clearance of the basis of allotment by the SEC. 

Applicants without CSCS accounts will have their shares credited at the CSCS using a Registrar Identification Number (RIN), in line with the SEC Directive on Dematerialization of Share Certificates not later than Wednesday, 18th December 2024

Upcoming AGMs

Aluminium Extrusion Industries Plc will hold its 37th Annual General Meeting (AGM)  on 24th January 2025. The delay in scheduling the AGM is due to logistics challenges, the unavailability of key personnels and other related factors.

Tantalizers will  hold its 2024 AGM on January 28, 2025. It attributed the delay to 

• Late completion of private placement and share acquisition by strategic investors.
• Dissolution of the previous Board of Directors and appointment of a new Board.
• Settling-in period for the new Board of Directors.

All necessary statutory and regulatory notices will be issued, and stakeholders’ announcement will be made on the Company’s website as well as through the Issuers’ Portal well ahead of the statutorily required 21 days notice.

Ronchess Global Resources Plc anticipates it will hold its 2021 – 2023 Annual General Meetings  early in the second quarter of 2025 subject to obtaining the requisite regulatory approvals required to properly convene the AGMs in the circumstances. 

New investors in Standard Alliance

Following a successful crossing of shares, Endura Investment Global Limited, became the core investors in Standard Alliance. Following the above, a new Board of Directors were appointed.

At the Board of Directors’ meeting that held on 23 August 2024, the following persons were appointed to the Board of the Company effective 23 September 2024:

Akinlolu Iroko – Chairman;

 Nathaniel Ibitowa – Non-Executive Director; 

 Rohan Fernando – Non-Executive Director; 

 Musa Lawan – Non-Executive Director; 

Paulinus Offorzor – Managing Director/CEO; 

 Michael Owope – Executive Director, Finance

. Olutayo Amore – Executive Director, Technical

The board also  appointed Halima Jimada as its new Company Secretary/Legal Adviser, effective 9 th October 2024. Halima Jimada took over from Kasoki Hart Olekanma who meritoriously served the Company for years. 

At the Board of Directors’ meeting of 21 June 2024, the following Directors resigned 

Johnson Chukwu Chairman

. Tayo Awodiya Managing Director/CEO 

 Niyi Odusi Executive Director, Technical 

. Pius Uwagbai Executive Director, Finance 

 Uzoma Ugbonwa Non -Executive Director 

 Haruna Mohammed Uwais Non-Executive Director. 

. Agnes Okiemute Umukoro Director 

. John Onojeharho Non-Executive Director

Other board and management changes

Madam Ammuna Lawan Ali and Ms. Abiola Alabi will retire  as Directors from the Board of Unilever Nigeria Plc effective from the 31st of December 2024. 

Their retirement is in line with the recommendation of principle 7.2.9 of Nigeria Code of Corporate Governance 2018 and Unilever Nigeria Plc’s Board charter which stipulates a maximum number of nine years tenure for Independent NonExecutive directors. 

 At a meeting which took place on the 12th of December 2024, Juliet Anammah was appointed as the substantive Chair of Nigerian Breweries Board effective the 1st of January 2025. She takes over from Mr. Sijbe “Siep” Hiemstra who has been the Board Chairman in interim capacity since the start of the year.

 Mrs. Anammah joined the Board effective the 1st of January 2022 and prior to her appointment as the Chair of the Board, she was the Chair of the Governance and Ethics Committee. 

Dr. Seinde Fadeni joined the Board of Directors of Consolidated Hallmark Holdings Plc on 4th December 2024. He sits on the Board of several companies including NAHCO and Forte Upstream Services Limited

What’s happening at the NGX this week? 

Vitafoam has a facts behind the figures session at the NGX Exchange tomorrow at 2.30pm

Vitafoam’s board will meet on Thursday, the 19th of December to consider its audited FY Sepember 2024 numbers, and a few other matters. 

A meeting of the Board of Directors of Lafarge Africa Plc has been scheduled to hold on Thursday, 19th December 2024 to consider the Company’s Audited Financial Statements for the 9months period ended 30th September 2024. 

PZ Cussons Nigeria’s board will meet on Friday, 20 December 2024, to consider, amongst other things, the Unaudited Financial Statements for the 2nd Quarter and half year ended 30 November 2024.

US equities last week

 Last week was mixed for US equities 

The S&P 500 declined 0.6%

The Dow dropped by 0.3%

The NASDAQ composite was an outlier as it gained 0.3%

Adobe shares fell last week following Q1 earnings guidance that came in slightly lower than analyst estimates. 

Analysts on average were expecting revenue of $5.73 billion, according to LSEG. The company guides for first quarter sales of between $5.63 billion and $5.68 billion,

Service Titan shares popped following an initial public offer. IPO. The shares were sold at $71, but closed a bit over $100 in their first day of trading.It ended last week at a $100. 

What’s happening this week? 

The US Fed is expected to cut interest rates by 0.25% at its last meeting for the year. 

Nike, Fedex and Micron will drop their earnings