₦airaland Forum

robobo:
Chief what is your reasoning behind bolded?

emmanuelewumi:
Nahco did not do private placement oooo. Nshco was owned by federal government of Nigeria. The company was privatized and the public offer was sold to Nigerians based on state of origin.

Bureau of Public Enterprise headed by Nasir El Rufai believed previous privatization was cornered by the South Westerners

pluto09:
Can zenith and GTB pay a dividend of N7 to N8

Agbalowomeri:
They must pay N10 o else we carry placard

Agbalowomeri:
They must pay N10 o else we carry placard

pluto09:
Can zenith and GTB pay a dividend of N7 to N8

Deadlytruth:
Okay. Thanks for the correction. I think the fact that it was sold to people on state of origin basis that made it appear as a private placement back then. I just recall that not really everyone interested in buying actually got to buy. But my question is, why make it a state of origin thing? Care giving more details?

Sunrisepebble:
It all depends on the fx gain component of their result. Which im yet to take a look at
On face value from an excel analysis someone sent me for final dividend, they believe
GT can pay N6, Zenith N4, UBA N2.50 and Access N2.05

pluto09:
Can zenith and GTB pay a dividend of N7 to N8

pluto09:
Can zenith and GTB pay a dividend of N7 to N8

Sunrisepebble:
It all depends on the fx gain component of their result. Which im yet to take a look at
On face value from an excel analysis someone sent me for final dividend, they believe
GT can pay N6, Zenith N4, UBA N2.50 and Access N2.05

KarlTom:
Are these figures the Final DIV or Total DIV?

pluto09:
Paying the amount you quoted here would mean a dividend yield of less than 10% when we have been used to a yield higher than that

onegentleguy:
Such is life my dear.

For near 2 decades (18 yrs and counting) we've been dishing out proficient, effective and value-driven investment guide for free (at least 88% of the time), oftentimes going off our comfort zone to help others yet...
Sometimes we even got insults/uncanny remarks, unfair criticisms, unwarranted bans (like the last 3... over an analysis I did on CHAMS, DS and GSK that would've served to benefit many... wonder why the bots are doing that), yet we try to offer help when we can.

Still, certain homo sapiens housing what should've been a God-given conscience and a life chose to slam us.

It might interest you to know that 2 among the folks who criticized me had at one point sent me private messages seeking for some form of financial advisory and investment guide. (one had to use a different moniker)
...shocking you'd say right?

Life can be quite unfair. Truth is; we live in a cruel world so it's best not to take this things to heart. That way, you get to preserve your physical, mental and spiritual wellbeing.

For as long as you live and lead your life with honesty and sincerity of purpose, every other thing will take care of itself... and God will take care of every other thing!

It is well.

emmanuelewumi:
Nigeria Stock Exchange was established in the early 60s all the listed company were foreign owned at least 99% of the shares were owned by foreigners.


My mentor late Akintunde Asalu in his book "my life of stock" said he bought his first stock in 1963 because he wanted to prove his Economics teacher at Kings College wrong. The teacher said Nigerians will continue to be poor unless they own shares in the big businesses making money in Nigeria.

Asalu was able to retire in 1972 at the age of 37, by the time he died in 2007 his stock portfolio was about N500 million, not bad for someone who never held a political appointment nor was a successful business man.


The first set of Nigerians to buy shares were corporate executives, Asalu worked with Unilever and RT Briscoe

When Nigeria Brewery, Nestle, Guinness etc had public offers, Nigerians didn't show interest except for the informed few.

In 1976, Obasanjo introduced the indigenization policy which made it compulsory for Nigerian citizens or Nigerian government to own between 40% to 60% of the shares of listed companies.


That was how Nigerians, state government and FGN owned shares in all the companies on the stock exchange from Manufacturers to banks, petroleum marketing.

Unfortunately it was Nigerians from a certain part of the country that were able to harness this opportunity.


What El Rufai did in 2003 was to democratize ownership of the privatized businesses by making sure the shares were bought by all Nigerians

emmanuelewumi:
What El Rufai did in 2003 was to democratise ownership of the privatized businesses by making sure the shares were bought by all Nigerians

Deadlytruth:
Okay, just seeing the bolded. But then, given the fact that the country's commercial capital is located in the SW, it is natural for SW to be ahead of the rest of the other regions in terms of financial education. No rocket science there at all.

Harvestock01:
Was the result of the attempt to democratise ever made public?

mikeapollo:
Thanks for this update; highly educating.

But were Nigerians from any other parts of the country prevented from buying the shares in those olden days?
I guess it was the educated few, not necessarily people from particular part(s) of the country that bought the shares.
Even right now, I think only the enlightened few still have shares in these companies; majority of Nigerians from all parts of the country still do not own shares or any form of securities.

emmanuelewumi:
It was the same El Rufai who introduced me concept of core investors for the privatized companies.

That was why Wale and his goons became the buyers of FGN shares in Unipetrol now called Oando.

The government of Babangida did a better job with the democratization of the privatization program through TCPC

Fundlocator:
Please we need JIJO stocks, We have missed LOCO so much here.
Na so so bad belle we dey see.
All the bad belle wey dey sing TA, TA.
Una TA no dey give us shishi

mikeapollo:
Do you have any perspective about whether the attempt to democratize the shares was made public?

I think so many people (investors) bought shares and acquired different FGN companies, some of which are doing good or have gone bad, from then and up till now.

It seems Wale and Oando is your main issue

emmanuelewumi:
You can't be talking of democratization of ownership as per Nahco and some other companies, but when it was time to privatize National Oil, Unipetrol and Africa Petrol, you introduced the concept of core investor.


Adenuga was the core investor of National Oil, Wale and his goons for Unipetrol and Sadiq brothers for Africa Petroleum. People believed Sadiq was the front used by Atiku.

Atiku was the chairman of BPE

mikeapollo:
Don't you think the term ''core investor'' was only used to describe the investor that won the bid to buy the companies (based on technical and financial capacity) and was buying controlling stake (50%+) of the shares value?

emmanuelewumi:
Not based on technical or financial capacity. How the core investors embarked on asset stripping in order to service the loan used in buying the shares.

The foreign founders of the companies could have been retained as technical partners

emmanuelewumi:
Not based on technical or financial capacity. How the core investors embarked on asset stripping in order to service the loan used in buying the shares.

The foreign founders of the companies could have been retained as technical partners

Harvestock01:
The concept of a core investor is not a bad idea if done within a proper regulatory framework.

A core investor can be limited to 25% share ownership with a ceiling of say 40%.

Democratising share ownership is a no brainer because you can not force unwilling people to become shareholders. Even if you are able to do that, you can still not force them to not sell the shares eventually which will defeat the objective of democratisation.

For example, if you decide to democratise wealth by sharing money to everyone, how long do you think it will take before the money return to the wealthy🤔

mikeapollo:
The foreign founders had already lost control in the 1970s during Murtala/Obasanjo's indigenization programme. That was when British Petroleum (BP) was forcefully taken over by FGN and changed to African Petroleum (AP).
By the time El-Rufai's BPE was doing the privatization programme in the 2000s, most of the foreign owners had long left and the companies were mostly owned 100% by FGN.
The FGN then requested for bids and the winners (based on financial, technical or whatever criteria) were those who acquired controlling interests (50%+). These were called core investors. Later, the FGN sold its shares in the companies to the Nigeria public. That is how most of the FGN companies became privatized and listed on the NGX.

Some other ones went totally bad.

Harvestock01:
The concept of a core investor is not a bad idea if done within a proper regulatory framework.

A core investor can be limited to 25% share ownership with a ceiling of say 40%.

Democratising share ownership is a no brainer because you can not force unwilling people to become shareholders. Even if you are able to do that, you can still not force them to not sell the shares eventually which will defeat the objective of democratisation.

For example, if you decide to democratise wealth by sharing money to everyone, how long do you think it will take before the money return to the wealthy🤔