yMcy56:

Lol. Pls don't take me for my words o, it's just speculations.
Iit may be true, near true or not.
Final decision lies with FMN.

OBAGADAFFI:


Big men and debts.
What was he thinking?

Never planned to pay back, as long as he was in control of First Bank. His removal from the bank changed the plans

Hope you remember that FBN Capital was the underwriter of the IPO of Honeywell at an inflated price of N7.50 about 15 years ago.
As the underwriter the IPO was not successful but FBN Capital had to pay and warehoused the shares for ages

yMcy56:

I think las las, Flour Mills will buy out the minority shareholders OR merge with Honeywell and allocate FMN shares to minority shareholders in form of share conversion in ratio distribution.

Presently 71.69% acquisition from Honeywell Plc + 5.06% from FBNH....... totalling 76.75%

Remaining minority owns mere 23.25%.
There might be need for rebranding .........

Was posted here sometimes ago but many didn't agree to this.

Another angle might be the likely dilution of Honeywell shareholding structure, if the new Investors takeover the debts of the company and convert it to equity

emmanuelewumi:



Never planned to pay back, as long as he was in control of First Bank. His removal from the bank changed the plans

Hope you remember that FBN Capital was the underwriter of the IPO of Honeywell at an inflated price of N7.50 about 15 years ago.
As the underwriter the IPO was not successful but FBN Capital had to pay and warehoused the shares for ages

Those fraudulent IPOs.
Bad memories.

FlourMills, Zenith, Nestle and GTB kept some of us in the Market.

I wonder how these debtors sleep at night

emmanuelewumi:



Buying from Oba keh, there is a lien on his First Bank shares, Honeywell shares, Airtel shares and his hotel. The proceeds of the liquidation of the Investments will go to First Bank

First Bank is not in the business of managing a Flour Mill business, so CBN invited FMN into the equation. I think CBN will make the deal to succeed. Emefiele and Zenith Bank have been doing business with FMN for the past 30 years. There is a Zenith bank branch at their Eric Moore factory sef.

Otudeko is indebted to First Bank, Honeywell Flour Mills is also indebted to First Bank and both of them ie Otudeko and Honeywell have been struggling to liquidate the debt for ages.


Oba's personal indebtedness to First Bank is over N70 billion

emmanuelewumi:



Buying from Oba keh, there is a lien on his First Bank shares, Honeywell shares, Airtel shares and his hotel. The proceeds of the liquidation of the Investments will go to First Bank

First Bank is not in the business of managing a Flour Mill business, so CBN invited FMN into the equation. I think CBN will make the deal to succeed. Emefiele and Zenith Bank have been doing business with FMN for the past 30 years. There is a Zenith bank branch at their Eric Moore factory sef.

Otudeko is indebted to First Bank, Honeywell Flour Mills is also indebted to First Bank and both of them ie Otudeko and Honeywell have been struggling to liquidate the debt for ages.


Oba's personal indebtedness to First Bank is over N70 billion

My boss

The way u de carry dish info de sweet.

What's the best solution for Otudeko?

kalu61:
My boss

The way u de carry dish info de sweet.

What's the best solution for Otudeko?

Ecobank just warned FMN to stay off the deal.

Honeywell is indebted to Ecobank for more than 15 years now.

Honeywell took Ecobank to court when the bank wanted to take over the company, due to the debt.

Honeywell lost the case at the High Court.


Honeywell appealed the case, the company lost at the Court of Appeal.

Honeywell has now taken the case to the Supreme Court

emmanuelewumi:



Ecobank just warned FMN to stay off the deal.

Honeywell is indebted to Ecobank for more than 15 years now.

Honeywell took Ecobank to court when the bank wanted to take over the company, due to the debt.

Honeywell lost the case at the High Court.


Honeywell appealed the case, the company lost at the Court of Appeal.

Honeywell has now taken the case to the Supreme Court

Should Ecobank win at the supreme Court, they will face off with FBN for the soul of honeywell.

Wherever wins will go to finals with FMN

Drama too much

kalu61:
Should Ecobank win at the supreme Court, they will face off with FBN for the soul of honeywell.

Wherever wins will go to finals with FMN

Drama too much

The money is just N5.5 billion, should not be a major issue

emmanuelewumi:



The money is just N5.5 billion, should not be a major issue

Okay, I haven't being following.

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There's too much drama on Honeyflour, I ll sell mine first thing this morning.

emmanuelewumi:
The money is just N5.5 billion, should not be a major issue

I wonder how anyone will think FMN is not aware of the indebtedness to Ecobank in the first place.

A company willing to buy 76.75% of Honeywell at a huge premium, paying a whooping N80B, how can N5.5B be an issue to them??
Who is Ecobank to dictate what FMN should or should not do to them?

These guys are just trying to trend and create issues where there's none.

Guess Ecobank is trying to create awareness to FMN and looking for a way to benefit here as well.

FMN has signed the deal, Ecobank's noise can't get to them. .......Otudeko on the other hand is smarter.

yMcy56:

I wonder how anyone will think FMN is not aware of the indebtedness to Ecobank in the first place.

A company willing to buy 76.75% of Honeywell at a huge premium, paying a whooping N80B, how can N5.5B be an issue to them??
Who is Ecobank to dictate what FMN should or should not do to them?

These guys are just trying to trend and create issues where there's none.

Guess Ecobank is trying to create awareness to FMN and looking for a way to benefit here as well.

FMN has signed the deal, Ecobank's noise can't get to them. .......Otudeko on the other hand is smarter.

I agree with you. I think eco bank is just being wise by letting FMN know that it has a 5.5billion loan pending. After all the payment of 80billion by FMN for honey well is subject to deduction of all the debt owed by honeywell. At the end i wonder what would be left.

Mpeace:
I agree with you. I think eco bank is just being wise by letting FMN know that it has a 5.5billion loan pending. After all the payment of 80billion by FMN for honey well is subject to deduction of all the debt owed by honeywell. At the end i wonder what would be left.

Honeywell bids disappearing in pre-market!

Raider76:


Honeywell bids disappearing in pre-market!

Its now on full offer. Na wa oh. 59billion units on offer.

Raider76:


Honeywell bids disappearing in pre-market!

Now on full offer with 60m on offer. The trap has caught it's victims.

https://doclib.ngxgroup.com/Financial_NewsDocs/34614_FCMB_GROUP_PLC%20_QUARTER_3_%20_FINANCIAL_STATEMENT_FOR_20.pdf

FCMB result is out. Flat as possible. Eps 70kobo just as last year although its PAT fell by 100million.

libartay:



Sir has the rain come or it's just drizzling?

As I said earlier, I have not seen any reason for rainfall now.I will not like to talk about it because those are my ogas here.

yMcy56:

I wonder how anyone will think FMN is not aware of the indebtedness to Ecobank in the first place.

A company willing to buy 76.75% of Honeywell at a huge premium, paying a whooping N80B, how can N5.5B be an issue to them??
Who is Ecobank to dictate what FMN should or should not do to them?

These guys are just trying to trend and create issues where there's none.

Guess Ecobank is trying to create awareness to FMN and looking for a way to benefit here as well.

FMN has signed the deal, Ecobank's noise can't get to them. .......Otudeko on the other hand is smarter.

They didn't pay the N80B. The amount to be paid in the end will depend on the debts. This is where I smell some deceit. Why mention the N80B when it is not the final price?

yMcy56:

I wonder how anyone will think FMN is not aware of the indebtedness to Ecobank in the first place.

A company willing to buy 76.75% of Honeywell at a huge premium, paying a whooping N80B, how can N5.5B be an issue to them??
Who is Ecobank to dictate what FMN should or should not do to them?

These guys are just trying to trend and create issues where there's none.

Guess Ecobank is trying to create awareness to FMN and looking for a way to benefit here as well.

FMN has signed the deal, Ecobank's noise can't get to them. .......Otudeko on the other hand is smarter.

N80 billion Enterprise Value is the theoretical acquisition cost to FMN. The lower the Enterprise Value compared to the market value the better for FMN.

Having a negative Enterprise Value sef is the real deal.

At a market price of N4.00 per share and Enterprise Value price of N10 per share.

It means for every N4 stock price per share, there is N6 debt per share

FMN has not decided on the purchase price, but only gave the Enterprise Value as N80 billion or the theoretical cost of going ahead with the deal after adding the debts of the business.

Raider76:


They didn't pay the N80B. The amount to be paid in the end will depend on the debts. This is where I smell some deceit. Why mention the N80B when it is not the final price?

You are a smart guy.

Raider76:


They didn't pay the N80B. The amount to be paid in the end will depend on the debts. This is where I smell some deceit. Why mention the N80B when it is not the final price?

Oil dey ur head.... what they are simply saying is that whoever is being owed should come forward to be settled from the 80 bn. After settling creditors and netting out the cash and net current assets, they'll settle Otudeko and his cohorts with what is left.


Ecobank has just shown up to say: They are owing us oooo. More creditors will show up with time.

By the way even if FMN pays a 75% premium to acquire majority shareholding, it doesn't mean the minority shareholder will get same premium.

I remember when 11 Plc acquired Mobil oil Plc, That wasn't the case.

Indeed if FMN ends up being shortchanged in this deal.. they'll take some meat off the minority shareholders. and SEC will do absolutely nothing about it.

austinkenneth:

Oil dey ur head.... what they are simply saying is that whoever is being owed should come forward to be settled from the 80 bn. After settling creditors and netting out the cash, they'll settle Otudeko and his cohorts with what is left.

Ecobank has just shown up to say: They are owing us oooo. More creditors will show up with time.

At the end of the day the business might be recapitalised and the shareholding structure will be seriously altered

austinkenneth:

Oil dey ur head.... what they are simply saying is that whoever is being owed should come forward to be settled from the 80 bn. After settling creditors and netting out the cash and net current assets, they'll settle Otudeko and his cohorts with what is left.


Ecobank has just shown up to say: They are owing us oooo. More creditors will show up with time.

By the way even if FMN pays a 75% premium to acquire majority shareholding, it doesn't mean the minority shareholder will get same premium.

I remember when 11 Plc acquired Mobil oil Plc, That wasn't the case.

Indeed if FMN ends up being shortchanged in this deal.. they'll take some meat off the minority shareholders. and SEC will do absolutely nothing about it.

FMN has not decided on the purchase price per share

Marketapprentic:

Pls i need contact of a broker urgently. I bought this 6,500 unit shares from oceanic bank then in 2008 and i never know how to go about it because they changed to Ecobank. please what do i need to do because i don’t even have the certificate.. only one paper where i can see the certificate number.

barrlabs975:
Pls i need contact of a broker urgently. I bought this 6,500 unit shares from oceanic bank then in 2008 and i never know how to go about it because they changed to Ecobank. please what do i need to do because i don’t even have the certificate.. only one paper where i can see the certificate number.

see my contact on my signature from Investment One.

emmasoft:


see my contact on my signature from Investment One.

sorry i couldn’t find the contact, can you dm or should i write my number may be you give me a call and or we will do whatsap .. hope you don't get offended

I was going through the 2020 Annual Report of SFSREIT and i tried to see what amount of debt they have.
It seems they don't have any debt.
Am i wrong?

Too much analysis-paralysis on this HW.........

GTCo already formed support @25.35/25.40...........stronger support @25.......
Will GTB reverse up from here or the moneybags are not yet done with their fill ?
We are watching........

ZENITH on the other hand is trying to move up ........but seems scared.........maybe because the oga-on-top has moved so close to her.........
Still parading around 24.10/24.30

Still watching the drama here.....

*Both GT and Zee are getting lots of attn though*

Wapgod:
I was going through the 2020 Annual Report of SFSREIT and i tried to see what amount of debt they have.
It seems they don't have any debt.
Am i wrong?

I don't think we have any REIT in Nigeria whose cash or liquid assets is not up to 10 times of their debt


I think they need to take more debt that is not more than 150% of their annual income of 10% of their real estate assets, they can also consider having a Dividend Reinvestment Program

Raider76:


They didn't pay the N80B. The amount to be paid in the end will depend on the debts. This is where I smell some deceit. Why mention the N80B when it is not the final price?

austinkenneth:

Oil dey ur head.... what they are simply saying is that whoever is being owed should come forward to be settled from the 80 bn. After settling creditors and netting out the cash and net current assets, they'll settle Otudeko and his cohorts with what is left.


Ecobank has just shown up to say: They are owing us oooo. More creditors will show up with time.

By the way even if FMN pays a 75% premium to acquire majority shareholding, it doesn't mean the minority shareholder will get same premium.

I remember when 11 Plc acquired Mobil oil Plc, That wasn't the case.

Indeed if FMN ends up being shortchanged in this deal.. they'll take some meat off the minority shareholders. and SEC will do absolutely nothing about it.

You are probably getting it twisted Sir.
...don't think there's any intent to deceive.

The N80B is the EV peg, and that amount already factored in the DEBT, EQUITY and CASH position of HONEYWELL. Thats why it's called Enterprise Value... all concerns except for cash has to be inherited/taken up by the acquiring company before arriving at a quoted figure (in this case N80B), and NOT after it. (as u lay claim)
The exception with ECOBANK must be because it was probably excluded from the scheme of things before arriving at that N80B EV amount.
Mr Otudeko may have excluded them with the thinking that Honeywell will likely win the standing court case.

@austinekenneth, if we have go by that anology in ur 1st paragraph, then OLAM may not have paid even 30% of what it did to DF holders. ...that N24 peg would've been perhaps N8.
And FMN might as well pay just N1B for HONEYWELL.
Yes HFM may not have been well managed, but remember that we are talking about the mkt value for a 71.69% stake in one of the biggest flour milling coy in the country.
If DF, despite it's struggles prior to the OLAM deal can get N24, then HFM can get that N7.61 projected EV peg. ...N4-5 would be a worst case scenario... and that, because of the name behind the coy.

I think the misrepresentation of things has come from whether we truly understand how the application of the EV technique works.

I agree with you on the part in bold though... and I did mention it in my article yesterday.
I also worry for FMN. Am concerned about what they might inherit and the likely impact it could have on them. ...especially in the short term. HFM was not particularly a well managed coy.

Btw, @Mcy56, Sir Mpeace and Ema are right.
What Ecobank has done is very much in order. They're trying to protect their interest so they don't get knocked off.
It clearly means that the N80B EV did not capture their own part of debt and by extension, interest accruals over time.

Then again, that N80B amount mirrors only the Mkt Value of a 71.69% stake and not 100%. ...there will still be a 2.87% leftover for Mr Otudeko via his Siloam Global vehicle from a projected 23.25% free float post execution of the deal.
Perhaps he may have to settle Ecobank with that 2.87%, since the amount involved is rumured to be btw N5-7B.

The shrewd thing to do, if FMN really means business is to get Mr Otudeko to the table and find out what exactly is the true position of HONEYWELLs indebtedness to ECOBANK. ...then they can set matters straight. There's really no big deal to this.

On a side note, companies usually set aside (by convention) a % proportion of a loan amount as provision for loss in the event that it goes bad. Especially where it has a pending court litigation against it by the lender. So HFM may already have a figure in its book.
Note that this is different from the normal provisioning for loses to creditors.
(aside FBNH, we already know that HFM is presently indebted to only FIDELITY and POLARIS BANK)
This kind of provisioning usually stems from where there's a court litigation in place.
Here the coy projects a figure which eventually translates to a positive (if and when it wins the case) or a negative (if it loses). ...either way, it mirrors it to its earnings flow pending input to it's balance sheet at the end of the litigation.
I think GTB has something like that in place over the innoson motors saga.
So assuming that HFM eventually loses the case to ECOBANK (I believe it will) there should already be something in place.
If there isn't, then it will be because the name behind HFM has never been one to associate good coperate governance with. ...this was one of the reasons I cautioned against the likely temptation to want to jump in/buy just based on the N7.61 EV FVE if one was not already in. (refer to my article from yesterday... https://www.booksie.com/663035-a-bank-and-2-flour-milling-company )

In all, I believe that this matter is not weighty for FMN to handle. Again, if they mean business.
I think they may even eventually tender an MTO to buy out minority holders in future.

HFM shares will drop a bit from here. ...but it will likely create a fresh entry opportunity for new entrants.

It is well.