CORPORATE NEWS FROM KENYA AND NIGERIA

NIGERIA:

VITAFOAM GETS N2BN LOAN

Vitafoam Nigeria PLC has secured a N2bn soft loan from the Nigerian Bank of Industry to augment its working capital and ginger up two subsidiaries 

According to the company secretary and legal adviser, Lekan Sanni, the loan has already been disbursed and it has 5 year tenor at 12% interest rate and one year moratorium on the principal.

Vitafoam is expecting to boost its profitability with the facility because it will lead considerable savings on present day cost of funds and also help the company leverage on bulk purchase of some raw materials leading to lower procurement costs.

Two subsidiaries of the group will also feel the impact of the fund. Vitaparts, a subsidiary set up to manufacture oil filters and so diversify group income base, will come on stream 3rd quarter of this year after conclusion of importation and installation of machines by 2nd quarter.

Also, Vitablom, has installed plant for fibre processing to boost group operations.

7UP BOTTLING CO PLC:
ACQUISITION OFFER

The majority shareholder in Seven Bottling company PLC, Affelka SA, has offered to acquire the full 100% issued shares in the company.

According to Samuel O Uboh of Equity Services ltd, the company Secretary, Affelka now wants to buy up the shares owned by minority shareholders at the rate of N125 per share.

The original interest in the deal was expressed by Affelka in August last through a formal proposal and the N125 actually represents an increase on the original proposal.

Also, based on market price by January 9, the offer comes to 22.6% premium.

The court ordered shareholders meeting to vote on offer was scheduled for yesterday January 11, 2018.

FLOUR MILLS RIGHTS OPENS MONDAY

Flour Mills of Nigeria Plc's rights offer intended to raise about N40 bn new money from shareholders opens next Monday January 15 to close February 21.

According to Mr Godstime Iwenekhai, head listing department of the Nigerian stock exchange, shares are expected to take up 9 new shares for every 16 presently held and at N27 per share.

In all 1,476,142,418 shares will be offered and those that fail to take up their portion will end up with watered down % holdings in the company but they could sell the same rights at the Nigerian stock market to others if they so wish 

KENYA:

BRITAM; DEACONS, HF GROUP WARN OF 2017 EARNINGS DROP

In recent times, three companies quoted on the Nairobi stock market have warned investors of likely at least 25% decline in earnings for the financial year 2017.

Britam Holdings issued its own warning based on the impact of change of valuation method for long term liabilities to gross premium method from net premium hitherto.

The net effect of this. says company secretary Nancy Kiruki was upward review of 2016 earnings by Ksh 5.2bn which made 2017 figure comparatively down.

The change in method was as required by the Insurance Act as amended in 2015 by new Finance Act.

Deacons (East Africa) PLC also warned of at least 25% earnings drop for 2017 year.

According to company secretary J L Maonga, this was occasioned by uncertainties around the presidential elections held within the year; prolonged drought and its inflationary pressures and decrease in foot traffic at shopping malls due to availability of surplus retail space.

Finally, HF Group PLC also warned of at least 25% earnings decline  because of interest rate capping and introduction of floor on deposit rates by the banking amendment Act 2016 and slow processing of transactions at the Ministry of Land Registers which slowed down liquidation of project loans.

That is, according to Group managing director, Frank Ireri who added that corporate new focus is on investment in digital channels; customers experience and services; deepening of banking value and scaling up provision of affordable and decent housing.

REGIONAL CEO FOR JUBILEE HOLDINGS

The immediate past chief executive officer of fellow quoted company, Uchumi Supermarket, Mr Julius K Kipngetich, has been appointed regional CEO for Jubilee Holdings plc with effect from January 1, this year.

According to Margaret M Kipchumba, the company secretary, the new CEO brings to bear wealth of experience and an MBA and Bachelor of Commerce (accounting option) from the University of Nairobi.

NEW CHAIRMAN FOR KENYA POWER & LIGHTING PLC.

A new chairman for the board of directors of Kenya Power & Lighting PLC has been appointed with effect from January 9, 2018 in the person of Amb (Eng.) Mahboub Maalim Mohammed.

According to company secretary, Beatrice Meso, the new chairman brings to the table many years in public service in various capacities including as District project coordinator for World bank financed drought recovery project; as National coordinator of Arid lands resource management project and as executive director, Intergovernmental Authority on Development.

He holds MSc and Bsc in civil engineering from Texas A&I University, USA.


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