Mpeace: Take a look at Transcorp's 2013 result, you will find that the sum borrowed and spent on acquisitions and other projects did not reflect in the profit and loss section(result at a glance on pg 5) but were mentioned in pg44 (2.16) as "capitalised".http://transcorpnigeria.com/wp-content/uploads/2014/06/Transcorp-PLC-2013-Annual-Report.pdf.

passwelle: On IEI, the 2012 results released in May 14 can be accessed here http://www.nse.com.ng/Financial_NewsDocs/6176_INTERNATIONAL_ENERGY__AUDITED_2012_FINANCIAL_STATEMENTS_MAY_2014.pdf
On page 72 there is a N1,7bn figure and in the notes it states:
This is an investment in IEI Investment Limited. IEI Investment Limited was the Special Purpose Vehicle (SPV) for facilitating the Investment in Heritage Bank Limited. The Note issued to IEI Plc by IEI Investment Limited is redeemable or convertible on 31 December 2013.The Notes gives the holder a right to surrender 100% of the note certificate or part thereof for conversion into ordinary shares of Heritage Bank Limited, the post acquisition entity that emerged from Societe Generale Bank Ltd at the end of the tenor. The conversion of the Note is meant to be at 15% premium on the net asset value of Heritage Bank."
Anyone know what happened after the 31st of Dec?

Dexterax:

This reminds me of forward looking things...

passwelle: On IEI, the 2012 results released in May 14 can be accessed here http://www.nse.com.ng/Financial_NewsDocs/6176_INTERNATIONAL_ENERGY__AUDITED_2012_FINANCIAL_STATEMENTS_MAY_2014.pdf
On page 72 there is a N1,7bn figure and in the notes it states:
This is an investment in IEI Investment Limited. IEI Investment Limited was the Special Purpose Vehicle (SPV) for facilitating the Investment in Heritage Bank Limited. The Note issued to IEI Plc by IEI Investment Limited is redeemable or convertible on 31 December 2013.The Notes gives the holder a right to surrender 100% of the note certificate or part thereof for conversion into ordinary shares of Heritage Bank Limited, the post acquisition entity that emerged from Societe Generale Bank Ltd at the end of the tenor. The conversion of the Note is meant to be at 15% premium on the net asset value of Heritage Bank."
Anyone know what happened after the 31st of Dec?

mercylicious:

Abeg check the 2013 result, it willbe there.
i asked google the business of Heritage bank and their owners(not directors). Some news papers said iei is d major shareholder while d said family has 10%.. Others said IEI has 10 % same as the BUKOLA family.

mercylicious:

Abeg check the 2013 result, it willbe there.
i asked google the business of Heritage bank and their owners(not directors). Some news papers said iei is d major shareholder while d said family has 10%.. Others said IEI has 10 % same as the BUKOLA family.

omaojo1:

Madam, first of all, if there was an immediate kill to be made, IEI shares would have flown north with all guns blazing.

An SPV is the owner of Heritage bank and they own 80%, Saraki 9% and others 11%. The investment of IEI Plc in the vehicle is 1.7bn naira. The Net Assets of the bank as at the time of this acquisition was 10bn naira with Total assets standing at about 31bn naira. So IEI Plc owns 17% of the bank or 21.25% of the SPV's investment in the bank.

The unknown element here is who the promoters of this SPV is. How they are going to raise the 56bn naira consideration for this transaction is a question that is still begging for answer.

paulcube:

Very true.... but do you bid without knowing where to get the cash??

omaojo1:

We need to know those bringing in the cash. We don't want some unknown guys to provide the funds and leave the unsuspecting investors wailing. A case in point is the recent acquisition of COP that the financiers are still not known to the average investor.

Don't tell me you are a believer in that 50% debt 50% equity theory being sold to the ignorant folks on the street.

paulcube:

.... but the difference between the COP deal and this one...please correct me if I am wrong...

Oando is a publicly listed & traded company, while Heritage bank is not. We also know the financiers of the COP deal.

Whenever Heritage banks comes to the market or for listing, they will have to make everything plain for us all to understand before we buy into the bank.

For this particular transaction, I am least bothered because the truth will be revealed with time....If the guys cannot pay, Fidelity definitely bid less, and because they are listed, they will be a lot more transparent.

omaojo1:

Did you read where Mercy is taking a position in IEI Plc because of this acquisition. Oh, you mean Yahoo shareholders should not bother about what is happening in Alibaba because it is a privately held company right?

Who are the financiers of the COP deal? WT said its 50% debt, and 50% equity. Please tell me your own version.

Plus, Fidelity is not the reserved bidder because their bid price is less. The overall interest of the industry was considered to reach that decision and not necessarily cash.

omaojo1:

We need to know those bringing in the cash. We don't want some unknown guys to provide the funds and leave the unsuspecting investors wailing. A case in point is the recent acquisition of COP that the financiers are still not known to the average investor.

Don't tell me you are a believer in that 50% debt 50% equity theory being sold to the ignorant folks on the street.

paulcube:

.... but the difference between the COP deal and this one...please correct me if I am wrong...

Oando is a publicly listed & traded company, while Heritage bank is not. We also know the financiers of the COP deal.

omaojo1:

Did you read where Mercy is taking a position in IEI Plc because of this acquisition. Oh, you mean Yahoo shareholders should not bother about what is happening in Alibaba because it is a privately held company right?

paulcube:

2. For the COP deal, due to the various financial engineering involved in the acquisition, I will not doubt it is 50% debt and 50% equity. Nobody can!

paulcube:

2. For the COP deal, due to the various financial engineering involved in the acquisition, I will not doubt it is 50% debt and 50% equity. Nobody can! All I can say is that we know the guys that provided the debt component to the transaction, and the full facts will come out when their audited 2014 results are released or when they come to the market for rights issue. We won't find anything tangible in the audited 2013 result.

paulcube: Fidelity definitely bid less, and because they are listed, they will be a lot more transparent.

mercylicious:
From d 2012 fin report, IEI plc invested 1.7b in iei investment . iei investment owns /owned 15% of heritage ( as at d date of dt report) .

What is not know is if iei investment is solely owned by iei plc or owns a % of the investment arm n what percentage of the 15% is owned by iei plc
They called the iei investment a special purpose vehicle to their investment in heritage.

omaojo1:
Madam, first of all, if there was an immediate kill to be made, IEI shares would have flown north with all guns blazing.
An SPV is the owner of Heritage bank and they own 80%, Saraki 9% and others 11%. The investment of IEI Plc in the vehicle is 1.7bn naira. The Net Assets of the bank as at the time of this acquisition was 10bn naira with Total assets standing at about 31bn naira. So IEI Plc owns 17% of the bank or 21.25% of the SPV's investment in the bank.
The unknown element here is who the promoters of this SPV is. How they are going to raise the 56bn naira consideration for this transaction is a question that is still begging for answer.

Dexterax: It is clear that the next decade will see an increase in the business of financial engineering and the floating of cash shells (in good time, some cash shells will even be listed on the NSE!)

Gird your loins peeps...a storm's coming!

*You may also interpret this to mean an upswing in the number of forward-looking paragraphs*

omaojo1:

Madam, first of all, if there was an immediate kill to be made, IEI shares would have flown north with all guns blazing.

An SPV is the owner of Heritage bank and they own 80%, Saraki 9% and others 11%. The investment of IEI Plc in the vehicle is 1.7bn naira. The Net Assets of the bank as at the time of this acquisition was 10bn naira with Total assets standing at about 31bn naira. So IEI Plc owns 17% of the bank or 21.25% of the SPV's investment in the bank.

The unknown element here is who the promoters of this SPV is. How they are going to raise the 56bn naira consideration for this transaction is a question that is still begging for answer.

mercylicious:

guy, i jumped into d insurance coy yesterday. Am not monkey hunting ,so please dont jump in wit me.

Na news dey rule d mkt. i no go shake if i lose money wey i take do this speculation.

kotlass:

I made an unsuccessful attempt to increase my stake. No offers

mercylicious: Ur unsuccesful attempt could be a blessing in disguise.

mercylicious:
No offers cos my bid was loading. . They couldnt even fill mine up.
Ur unsuccesful attempt could be a blessing in disguise
Am keeping my fingers crossed.

IEI has not published their 2013 result, lets hope there would be a massive turn around in their earning so dt prophet utuocha's prophesy will come to pass.

Please, lets get their investor relations to answer these questions.

jamace: So IEI did double shares reconstruction within a spate of 5 years in order to hijack investors money for this biz, eh? Reduced my million units of stocks to mere hundreds of units. These companies should be told that capitalism does not equal stealing in any form o.

omaojo1:

Madam, first of all, if there was an immediate kill to be made, IEI shares would have flown north with all guns blazing.

An SPV is the owner of Heritage bank and they own 80%, Saraki 9% and others 11%. The investment of IEI Plc in the vehicle is 1.7bn naira. The Net Assets of the bank as at the time of this acquisition was 10bn naira with Total assets standing at about 31bn naira. So IEI Plc owns 17% of the bank or 21.25% of the SPV's investment in the bank.

The unknown element here is who the promoters of this SPV is. How they are going to raise the 56bn naira consideration for this transaction is a question that is still begging for answer.