By Modupe Gbadeyanka
The board of NEM Insurance Plc has said it plans to raise an additional capital aimed to improve operations of the company.
In a statement issued by the firm, it was disclosed that the amounted needed for now is about N2.640 billion, which would be raised through issuing of additional shares of the insurer.
NEM Insurance said it wants to issue new 1.056 billion ordinary shares of 50 kobo each at N2.50k per unit by a Special/Private Placement.
However, before this can be done, the board is seeking authorisation of shareholders of the company.
This approval would be sought at the Annual General Meeting (AGM) of the firm slated for Tuesday, June 25, 2019 at the Federal Palace Hotel, Lagos.
“That on the recommendation of the directors, the shareholders hereby authorise the directors to raise additional capital through the issuance of not more than 1,056,000,000 ordinary shares of 50 kobo each, at N2.50k per share by way of a Special/Private Placement.
“That the shares proposed to be issued pursuant to the above resolution and the rights attaching thereto shall rank at least pari passu with the ordinary shares held by the existing shareholders in the company.
“That the shareholders hereby waive their pre-emptive rights under Article 43 of the Company’s Articles so as to enable the Special/Private Placement to proceed.
“That for the purpose of giving effect to the above, the board be and is hereby authorized to agree, make and accept all such term(s), condition(s) and modification(s) as it may deem fit, including, condition(s) and modification(s) stipulated or required by any relevant authorities and to seek all requisite approvals from the appropriate authorities, appoint consultants and advisers, finalize and execute all agreements or documents and to do all acts, deeds and things in this connection and incidental as the board in its absolute discretion may deem necessary and expedient for the purpose of the Special/Private Placement without being required to seek any further consent or approval of the members or otherwise to the end and intent that they shall be deemed to have given approval thereto expressly by the authority of this resolution,” the board said in a notice.
It was further disclosed during the AGM, shareholders will also be asked to amend the company’s Articles of Association by including a new Article 52, which states that, “The company may give notice of its Annual General Meeting and other statutory notices, its balance sheet (including every document required by law to be annexed thereto for consideration at the company’s General Meetings) in hard print or electronic format to any person entitled to receive such notices, either by sending them by post to the person’s last known registered address or by electronic mail to his/her last known electronic address.”
They will further authorise the changing of Article 52 to 53 and will then contain the clause “The accidental omission to give notice of a meeting or the non-receipt of notice of a meeting by any person entitled to receive notice shall not invalidate the proceedings at any meeting.”
Business Post reports that this amendment followed an issue the insurance company had with one of its shareholders last year.
In June 2018, the insurer held its AGM, but a number of shareholders including Eaton Acquisitions, Premium Green Limited, Starvest Limited, Three Sea Investment Limited and Oluwaseyilola A. Ojo notified the Nigerian Stock Exchange (NSE) of an infraction by NEM Insurance, claiming that the insurance company did not follow the laid down rules by notifying them of the planned AGM.
As a result, the aggrieved shareholders asked the regulators to invalidate the meeting as well as all the resolutions reached at the AGM, including the resolution to raise additional capital through a private placement at a price below the market price of NEM Insurance stock.
This request was granted by the Securities and Exchange Commission (SEC) and it directed the board of NEM Insurance to reconvene the 48th AGM, with proper notice given to shareholders in line with extant laws.
At the next month’s meeting, the board will present to shareholders the Annual Financial Statements of the company for the year ended December 31, 2017 and Reports of Directors, the Auditors Report thereon and Audit Committee’s Report.
FG Pledges Single-Digit Loans for Small Businesses
By Adedapo Adesanya
The federal government has pledged to support Micro, Small and Medium Enterprises (MSMEs) with single-digit loans so as to boost their businesses.
This was disclosed by the Minister of State for Industry, Trade and Investment, Mrs Maryam Katagum, on Friday when members of the Nigerian Association of Small and Medium Enterprises (NASME) visited her in Abuja.
According to her, there is a lot of commendation at the recent retreat President Muhammadu Buhari had with the ministers for the MSMEs.
“In his closing speech, Mr President specifically said that every support will be given to ensure that MSMEs have access to credits.
“That is what we always preach and we will give every support to the MSMEs as the engine of economic growth to have access to credits at single digits,” Mrs Katagum said.
The Minister, who pointed out the critical role MSMEs play in growing the economy, said this role was further heightened during the COVID-19 lockdown.
“Even the woman selling groundnut or `akara’ couldn’t come out to practice her passion. Everybody felt the effect of the lockdown.
“We have to appreciate President Muhammadu Buhari for interventions that were provided for MSMEs during the lockdown.
“And once it was identified to put in some mechanism to stop the economy from going under, our ministry is one of the ministries asked to make submissions to see how to keep the economy going and ensure free flow of goods and services across the country.
“Our proposal was very easily accepted and the sum of N75 billion was allocated and we made a lot of progress.
“Average Nigerians appreciated the efforts and we have seen them giving their testimonies and right now we are on the last track which is the guaranteed off-take scheme,” the Minister said.
She appealed to the association to identify innovative ways that the Federal Government can assist MSMEs.
“As partners, your association has to start thinking of new innovative ways that we can assist MSMEs, it’s not just the finance.
“So, when you give them the money, they don’t know what to do with the money so you need to intensify the capacity building and sharing of information to know what is happening and where,” she said.
On his part, the President and Chairman of the governing council of NASME, Mr Abdulrashid Yerima, expressed the association’s commitment to deepening the relationship with the ministry.
Mr Yerima appreciated the ministry for including NASME in various committees set up by the government to support the development of MSMEs in Nigeria.
He, however, sought the appointment of members of the association to the boards of parastatals under the ministry and solicited the ministry’s support for inputs into human capital development for the association.
“Our association serving in the board of revenant agencies under the ministry will help us to make informed inputs into the policies of the agencies that impact MSME growth and development in Nigeria.
“Also support for capital development for our association is crucial for the development of skills and manpower to upscale MSMEs especially NASME,” Mr Yerima said.
IGR: Osinbajo Expresses Worry Over Governors’ ‘Laziness’
By Adedapo Adesanya
Vice President Yemi Osinbajo seems to be worried about the inability of state governors to be innovative in boosting their respective Internally Generated Revenue (IGR).
The number 2 man, speaking at the maiden edition of Ekiti State’s investment forum in Ado-Ekiti, has, therefore, tasked them to think out of the box and act like a sovereign state so as to make them challenge countries of the world.
“Thinking differently, there is a need for a sub-national to think like a sovereign state. You have a bigger GDP (gross domestic product) and even more revenues than many nations.
“There is a different mindset when you are sure of a monthly allocation of cash at least enough to pay salaries, whether you generate income or not. This is the challenge. The so-called Dutch disease, one becomes complacent,” he said.
“But what if you had to take responsibility for all those who reside within your borders, pay all salaries, from internally generated revenue?” he queried.
Drawing a parallel, he said that Lagos State improved its IGR from N600 million monthly in 1999/2000 to about N45 billion today, adding that the illegal seizure of the allocations to the state by the then federal government was the shock that forced the state to rethink.
Speaking further, Mr Osinbajo noted that although a state within a federation is not a nation, it must behave like one, to further boost its economic development.
“The economy of the sub-national is a peculiar animal. The state within the federation is not a nation, but it must behave like one, it derives some resources from the federal pool, and generates some income, the overall sum will provide infrastructure and services to the community.
“The size of the sum and the quantum of opportunity available to provide livelihoods for the populace will depend on how the state enables local and external investors, small and large to put their resources into business and commercial activity business in the State.
“The funded portion of the state’s budget is after all a mere fraction of the sum total of economic activity or income-generating activity, formal or informal within the state. So, the attractiveness of a state to commerce is a radical issue,” Mr Osinbajo said.
He asserted that “the very lives and livelihoods of the people within the borders of the State, whether the people will live prosperous and happy lives, be educated, have access to affordable medical care, depends on it.”
He then encouraged them to key into the benefit from a private-sector led economy, noting that the model is the right way to go, as the business is the standpoint of the private sector, while governments should as much as possible facilitate, or at best, collaborate.
NGX Group Finally Lists 1.964 billion Shares, Trades at N17.75
By Aduragbemi Omiyale
A total of 1,964,115,918 shares, representing the issued share capital of the Nigerian Exchange (NGX) Group Plc, were successfully listed on the trading platform of NGX Limited on Friday, October 15, 2021.
Business Post reports that the stocks were listed on the exchange today by introduction at a unit price of N17.75, higher than the N14.68 per unit it last traded on the NASD Securities Exchange on Friday, October 8, 2021, it the shares used to be traded.
This newspaper gathered that at the exchange today, investors traded about 3.6 million units of the company’s equities worth N63.2 million in 31 deals and closed flat at N17.75.
It was listed on the main board of the NGX having satisfied the listing requirements of the exchange and obtained relevant regulatory approvals.
The company is on the bourse in the financial services and capital market infrastructure sector, with the ticker NGXGROUP.
The top members of staff of the company were honoured today with the closing gong ceremony and the Chairman, Mr Abimbola Ogunbanjo, in his speech, stated that, “Today’s listing of NGX Group on NGX is another milestone attained pursuant to the group’s 2018 – 2021 corporate strategy.
“Our shareholder base has more than doubled since our demutualisation in March 2021 and our valued shareholders will benefit from the enhanced liquidity that listing on the exchange will facilitate.
“This listing will also enable a much wider universe of potential investors and market participants to share in our growth journey.
“As a board, we embrace the letter and spirit of the listing requirements and we are committed to transparent disclosure, proactive stakeholder engagement and exemplary corporate governance.”
Also speaking, the Group Managing Director/Chief Executive Officer of NGX Group, Mr Oscar Onyema, disclosed that, “Today’s listing of NGX Group on the nation’s premier exchange will enable institutional investors globally as well as the Nigerian public to invest in Nigerian Exchange Group Plc.
“With strengthening market dynamics, serving the largest economy in Africa, NGX Group’s listing allows us to expand in key capital market infrastructure verticals and look beyond Nigeria’s borders, as we deliver on our growth plans to become Africa’s leading capital market infrastructure group.”
As for the CEO of NGX, Mr Temi Popoola, he described the listing as a milestone, expressing his excitement about the development.
“We congratulate the board and management first on a successful demutualisation and on its subsequent listing. This move is particularly exciting, as it will position NGX Group to provide liquidity to members while stimulating the capital market ecosystem to grow at the same pace as the economy.
“Today, we reiterate our commitment to being a trusted partner to NGX Group and other listed companies as we continue to build a platform that allows our listed companies, investors and other stakeholders to maximise value in our market,” he said.
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