No tax is due on the disposal of shares. The cash injection into the distribution business could either be in form of a loan o the business or an equity injection or could be a mixture. It all depends on what you want.

TwiceASGiant:
Hello All,

I would like you to share your knowledge and insights with me on this tax matter.

Assume that you're working for a multi-national company in Lagos and you periodically set aside around 60% of your net monthly pay and invest same into the shares of well-run companies listed on the NSE.

Assume further that at the end of ten years of working with the multi-national company, you decide to resign and incorporate your own company by being a distributor for the multi-national company's products.

However, before the incorporation of your company, you sold all your overvalued shares in your personal name and moved the proceeds into your newly incorporated company's bank account. In this case, would the person be liable to pay any tax to the Lagos Internal Revenue Service (LIRS) or the FIRS based on the proceeds from his liquidated shares?

Thank you.

Lasaco wants to raise capital. The share price will likely go upwards. Rights and Public offers and private placement loading.

Chibuking81:

If they give bonus after reconstruction, what is the need of reconstruction?
Anyway in Nigeria many things goes anticlockwise. Always manipulative avenue to achieve their goal.

Unity bank reconstructed I think up to ten units of share to one, and today where are they, back to base.

Is UPDC even worth 75k as at today? The only hope the shareholders will be banking on will be on the turnaround of the company. UPDC Reits has been shared to the UPDC shareholders. Las las I foresee Custodian buying over the remaining shareholders at a premium and the company delisted.

ukay2:


So you have finally understood me

However, following the Federal Government’s announcement of a public holiday on the said
December 28, 2020, we are pleased to inform the shareholders that the qualification dates for
both bonuses are now being moved to the next working date being December 29, 2020 i.e. from
28 December 2020 to 29 December 2020.

I think one has to be very careful when dealing with AIICO shares.. The listed shares outstanding as at today is 20,673,265,406 units. As at Q3, the outstanding shares in the unaudited financial statements was 11,330,202,920 units. How this has grown to 20,673,265,406 units as at today is beyond me. Please note that the 2 bonuses of 1 for 8 and 1 for 5 is even yet to be effected. Please deal with the shares of the company with a lot of caution.

Heishere:


The qualification date was yesterday which is a public holiday. I don't know if it will automatically be shifted to today.

The bonus will first be credited and according to the prospectus, the timeline is expected to be by Dec 31, 2020 after the company might have received approval from SEC. The reconstruction will take place sometimes in 2021.

debeey87:
From this addendum, it means people who bought after the markdown will have their number of units divided by 4 to reflect the 9bn outstanding shares post-reconstruction. Is this correct?

Yes Sir.

OBAGADAFFI:


Are you implying the Market price will be automatically multiplied by four after reconstruction?

I know the nominal price will be multiplied by four, from 0.50k to N2.

Well, I hope your prediction is correct, it is good news for us all.

The price as at today is N1.01. If the reconstruction was to be effective tomorrow. The opening price will be N4.04 and the par value of the stock will be N2 from 50k and the 3,428 units will shrink to 857units. I hope this is clear Sir.

OBAGADAFFI:


The reconstructed price will be N7.76 on January 1, 2021, how?

I understand what you mean now. In addition, the new price will now be 4 times the old price. Every other thing is correct as you have stated them.

OBAGADAFFI:


Share reconstruction. 4 to 1

If you have 1000units, you will get 250units after reconstruction.
1000/4= 250

Now,
The nominal price will be N2 instead of 0.50k

Calculate your risk.

1000 x N1(current price)= 1000

250 x N2(new price)= N500

Mcy56:

We'll see how it goes.........
.....but I think something is wrong with your calculations.

btw, it seems you're causing panic selling in the market oo

This is the way it is.

1,000units will give a bonus of 2,428 units at a ratio of 17 for 7. The total units will now be 3,428units when this is now reconstructed at ratio 4 to 1. the new units will now be 857units. As I have projected if this 10% madness continues till Dec 31, 2020. The price will peak around N1.94 and the reconstructed price will be N7.76 at January 1, 2021.

OBAGADAFFI:



Learn to calculate your risk as an investor.

if you buy

1000 @ N1 = 1000

After reconstruction, you will have
250units @N2 nominal price =N500

To break even, the market price must be N4 and above.

Well anything can happen

The coy got over 20b naira during this particular offer. If you get energy to convert to dollars, please do.

bigjay01:


anyhow sha, the guy fall hand big time

My Sister always doing the Lord's work. Well done Ma.

Mcy56:

I hope you bought in tranches as advised?
Saw the dumping and my mind went to you., that when you just entered the market. Felt a bit somehow.
That's why sometimes giving buy advice can be weary especially when prices have gone up.............but never to worry too much, you keyed into sound Fundamental stocks, that's if you still go for Access/Zenith and you're for long term as stated.
Give it time, it will bounce back. Don't sell at loss pls.
Watch out for stability in the price fall(support) and buy another set to bring down your cost price.

http://www.nse.com.ng/Financial_NewsDocs/31956_FTN_COCOA_PROCESSORS_PLC%20_QUARTER_3_%20_FINANCIAL_STATEM.pdf
I hope people will not cry when they get hooked into this company.

daddymgg:
FTN COCOA PLC ON STERIOD OHHHHHHHHH...STILL WAITING FOR WHEN TO SELL OHHHHH

My calculation was based on the closing price of Friday, November 27, 2020. The price has changed again today to N2.40

swilo:


Bros, more details please. N2.73 before reconstruction or after.

Well whatever it is, your cash remains the same. Pre and post reconstruction.

Using the closing price of N2.34 on Friday. The current o/s of Axa mansard is 10,500,000,000. A bonus of 17 for 7 will create new shares of 25,500,000,000 making the total shares to be 36b. A reduction of shares of 4 for 1 will reduce it to 9b. The nominal value of the shares will now be N2 instead of the common 50kobo that is prevalent in the market. There are other stocks whose nominal value is not 50k, i.e MTN.

The market value of the stock at 10.5b will be = 10.5 x 2.34 = N24.57b, the market value of the stock at 36b will equally be N24.57b and when it is reduced to 9b it must also be N24.57b. At 36b, the market price will be 0.6825 and at 9b, it will be N2.73.

longlife20:


Are you saying the price will be N12? no, i only use the nominal value of the share to arrived at that price. Market will always determine the price of a share. The only good thing about the reconstruction is that the share is now fewer than what it use to be which will have a positive impact on the EPS with16.66%.
if Q3 Eps is 50kobo, after reconstruction it will 58kobo.

I have been looking for the company that acquired AFAM. Is it Transcorp Power Limited that is 51% owned by Transcorp Plc and I do not even know who owns the rest of the 49%. Or Is it Heirs Holdings Plc?

longlife20:
TRANSNATIONAL CORPORATION OF NIGERIA PLC-PRESS RELEASE - TRANSCORP ACQUIRES AFAM POWER

http://www.nse.com.ng/Financial_NewsDocs/31864_TRANSNATIONAL_CORPORATION_OF_NIGERIA_PLC%20PRESS_RELEASE.pdf

If you try to execute a trade, it will show that the account has been suspended.

Seunn11:


How do people know if their accounts have been suspended?

Both have their positives. I love the itrade online platform. Very easy to navigate. The Investnow app is not friendly ditto with their web online trading platform. However, the investment tips and information far outweighs that of Morgan Capital. I use both but I love Itrade more.

kaynett:
Good afternoon all.

Between UNITED CAPITAL and MORGAN CAPITAL, which of them is a better stockbroking firm?

Happy birthday to you Sir.

jideflash:
Today is my birthday. Thanks to zenith for sending my flex money yesterday.

This one that MD of Bank A has bank accounts in Bank B, C, D and many more.

Heishere:


Yes. but if his bank monitors their salary accounts, they could see where the money is going to, assuming the investment is going to come from his salary.

Unless the fellow is holding a key position where he or she is expected to disclose in fulfilment of the requirement of NSE on insiders dealings. I see no reason why he or she should be bothered.

Heishere:


It is legal. Just that your employer shouldn't know.

http://www.nse.com.ng/Financial_NewsDocs/31313_UNIVERSITY_PRESS_PLC.-_QUARTER_5_-_FINANCIAL_STATEMENT.pdf
15k dividend

Oando that moved from Q3 positive to full year over 190billion in losses. Guinness will bounce back.

ojesymsym:
How do you go from 8.9B profit to 12.6B loss in one year? Even Oando non go do like that

The price did not get here in a single day. It took many years. What are we going to say about Nestle that is where it is today? NSE is not a burial ground. Do your due diligence and invest and continue to watch over it.

STNWAUME:


This same Guinness that traded at N300 sometime ago is now struggling at N15 and someone is arguing that NSE is not a burial ground.

Impairment of assets and Finance cost were the 2 major issues.

Tvegas:
what am I seeing in this Guinness result, N12.6 billion Loss or what? Or am I seeing double?

The gods must be vexing with Peter, All his monkey hunting just dey catch fire�.

Arhhhhhhhhhhhhhhh. It is just N1,000.

OBAGADAFFI:


N2000

The Financials of this company is not even anywhere. This company has billions in outstanding shares. Any serious investor in the Cocoa business would rather start afresh.

jamace:


Dry bones do rise again....One serious investor can change the destiny of Ftncocoa.... I have a dream..

It will be nice to clearly understand what Transnational Corporation of Nigeria Plc does before one starts to expect one big performance from the company. The Company’s business is investment and operation of portfolio companies in the hospitality, power, agro-allied and oil
& gas sectors. The Company maintains controlling interests in the following companies. The Company, together with the subsidiaries
are known as the Transcorp Group, ("the Group"
- Capital Leisure and Hospitality Limited
- Transcorp Hotels Plc
- Transcorp Hotels Calabar Limited
- Transcorp Energy Limited
- Teragro Commodities Limited
- Transcorp Power Limited
- Transcorp Properties Limited
- Transcorp OPL 281 Limited
- Transcorp Hotels Ikoyi Limited
- Transcorp Hotels Port Harcourt Limited

All the above listed subsidiaries are the vehicles that the company use to generate its income. The power business is bedevilled with huge receivables that is rarely paid on time. Covid 19 has dealt seriously with the Hospitality sector. The Oil business is comatose. the Agriculture venture was a disaster. I do not know the assets that the Properties coy manages. The whole coy is just a loud noise without substance. Maybe we will buy when it gets to 20kobo like someone suggested earlier. It once traded at the car park for many years before TOE came onboard. It seems that TOE himself has lost the plot to revive the company.

bolaayenimo:
I thought they said Tony Elumelu is a wonderful board guru. How come Transcorp is crumbling on his head? #heirholdings

people should thread UPL with caution. The coy makes money in Q2 (July - September). Other 3 quarters are losses. COVID-19 will seriously affect the company in 2020/21. Although the Full year 2019/2020 will come with lower profit than last year. Dividend of 10k or bonus is likely but 2020/2021 will be disappointing.

daddymgg:

Abeg tell us the company na abeg. Na UPL