₦airaland Forum

Mcy56:
Is it only me that can't view orders?
Anyone else ? Guess they're still working on it.

Uchetoba:
What is happening to Itrade? Market view has been blank since.

seyisanya:
While we await the boss' response, I would say: Yes, if you're planning mid-term to long-term investment. And no if you're in it for a short-term reward.

Heishere:
Here you go. Line 3 - 6 is in billions

FY 18 CCNN OBU Enlarged OBU
Energy Coal & LPFO Gas Gas, Coal & LPFO
shares 13,143,502 40,000 33,864,354
Revenue 31,721,962 87,290,610. 119,012,572
EBIT. 7,874,575 35,149,843 43,024,418
PAT 5,731,320 58,585,867 64,317,187
COGS per ton (N) (23,592) (19,727) (20,757)
Gross margin 45% 54% 51%
EPS (N) 0.44 1,465 1.90
ROE. 2% 68% 15%
Debt to Capital 0.16% 4% 0.93%
BVPS (N) 25.37 2,150.37 12.39
P/B (x) 0.65 0.01 1.32
P/E (x) 37.61 0.01 8.63

rebekah2011:
Are my eyes deceiving me? Is this suppose to be N9.60

BAMOFIN1:
COST OF TRANSACTION. I culled this from a stock investor's complaint on Nairametrics

Ola Ilesanmi August 27, 2019 at 12:10 pm

I don’t actually know what investors will return as gains as from next January if an investor pays
1.statutory Charges on equities subscribed @ 3.9% per transaction
2. VAT on investment 5% per transaction
3. VAT ( the percentage yet to be declared by IFRS ) on online transactions within or outside the country . One should understand that dividends are now transmitted electronically .per dividend
4 . You are going to pay stamp duty of #56.5 per lodgement
5. A minimum charge of #50 for ATM maintenance .monthly .
A HYPOTHETICAL EXAMPLE
Company : Timber PLC
Cost per unit : #4
Buying 1000 units is equal to #4000
TRANSACTION
Brokerage charge at 3.9%= #156
VAT on investment at 5% = #200
VAT on dividends say at 5%#200
Stamp duty charge at #56.5
ATM monthly service at #50
TOTAL. #656.5
DIVIDEND DECLARED BY THE COMPANY
.45kobo per share translating to #(.45×1000units) ÷ 100 = #450
Therefore an investor’s is equal to -#246.5 !
Even if you have your name in Forbes as a captain of industries , the above is still outside infrastructural maintenance , tariffs , EPA , staff salary etcetera that is if the above example is to be in multiple of millions , billions , trillions say for a multi national company .
DO WE REALLY HAVE ECONOMIC THINKERS / PUNTERS IN NIGERIA ?
Jijoist should factor these costs.

bigjay01:
this valuation (if true) is independent of the merger. The question is - what will be the dilutive effect of CCNN be on he resultant Obu cement?

CCNN EPS was relatively ok pre merger with Kalambaina. What is the story now? Now this!

Don't wanna feel sorry later. Afterall I got in @ #5ish

#EndSentimentalAttachments

Mpeace:
The whole deal is not too clear to me. CCNN shareholders will be serious minorities in the new company. The 35naira valuation is not too different from the 66 naira FO stuff. Its all paper stuff.
Me think the current demand/bull is due to a certain shareholder trying to enhance his position by accumulation, pending the completion of the merger.
My opinion though.Cement business is looking sweet, but one has to be careful cos what's happening in the breweries can also happen here. Big players are on the increase.
I see better opportunities in Zee/UBA/FID/FCMB

Uchetoba:
I'm yet to understand this CCNN and Obu thing. Is Obu Cement going to be listed at 35.11 after CCNN is delisted on Jan 8 2020

phemmie06:
CardinalStone Research,

CCNN and Obu Cement merger update: Excerpts from the scheme of merger

Cement Company of Northern Nigeria (CCNN) and Obu Cement Company Plc (Obu) have released a scheme of merger document for their impending business combination.

According to the document, Obu’s 40 million ordinary shares of 50 kobo each will be reconstructed to 20.7 billion shares of 50 kobo each of the enlarged entity. This represents a 1 for 518 share conversion ratio. On the other hand, CCNN’s shareholders will be accorded 1 share of the enlarged entity for each CCNN share owned. Thus, the outstanding shares of the enlarged entity would comprise the 13.1 billion ordinary CCNN shares currently available and the potentially reconstructed N20.7 billion new shares in favour of the 40 million ordinary shares of Obu. The implied 33.9 billion shares of the enlarged entity would be 61.2% owned by shareholders of Obu and 38.8% owned by shareholders of CCNN. On adjusting to reflect BUA Group’s 87.4% stake in CCNN, minority stake in the proposed entity is likely to be closer to 11.0% (3.7 billion shares).

Valuation of current CCNN shares.

Going by the scheme document, the total value of shares to be issued for the 13.1 billion shares owned by the scheme shareholders (i.e. CCNN shareholders) is N460.0 billion. This implies that the transaction values CCNN at N35.11 per share, compared to its current market price of N16.40 and our FY’19E BVPS of N25.81. The valuation is also at a significant premium to our 12-month target price of N12.97—which does not capture the proposed addition of the 3.0mtpa Kalambaina line 2.

Based on the provided proforma, the enlarged entity would have had ROE and ROA of 15.3% and 10.9% respectively in FY’18 compared to 1.7% and 1.6% respectively for CCNN. Although the estimated ROE and ROA of the proposed entity are biased by a N26.8 billion tax credit, they would still have approximated 9.0% and 6.3% respectively.

Other key information.
1. The enlarged entity would have an 8.0mtpa cement capacity, comprising CCNN’s 2mtpa capacity and Obu’s 6mtpa plant in Okpella, Edo state. This compares to Lafarge Nigeria’s 10.5mtpa installed capacity
2. If approved, the merger will see Obu absorb all CCNN’s assets, liabilities, and undertakings
3. The deal will also lead to the delisting of CCNN from the Nigerian Stock Exchange and listing of the enlarged entity on 8 January 2020
4. This deal is strictly a share for share transaction. No cash consideration is involved
5. This transaction is subject to the approval of shareholders and court sanction.

https://trwstockbrokers./2019/11/07/company-update-ccnn-and-obu-cement-merger-update-excerpts-from-the-scheme-of-merger/

OmalichaJesus:
Please don't ignore me please.

I'm new here, I'm totally lost and I'm very much interested in the stock market business.

Please I'll really be grateful if anyone or all of you put me through.
Please

mendes911:
CCNN - Full Offer.

Prof. Prof. You dumped this one wella on Mcy.

I twale!

Mpeace:
You never finish ur uacn research? Bring out the numbers let's see na.
Make we know the way

Calebbold:
If I understand correctly, the installed capacity of CCNN after merger would be 8.0mtpa, while the current installed capacity of WAPCO is 10.5mtpa

Wapco outstanding shares: 16.11B

CCNN outstanding shares after merger: 33.9B

In my opinion, CCNN is trying to rip off their minority shareholders.

valentinenwoko:
Is it possible

rebekah2011:
http://www.nse.com.ng/Financial_NewsDocs/28195_U_A_C_N__OF_NIGERIA_PLC._CORPORATE_ACTIONS_NOVEMBER_2019.pdf
http://www.nse.com.ng/Financial_NewsDocs/28196_U_A_C_N__OF_NIGERIA_PLC._CORPORATE_ACTIONS_NOVEMBER_2019.pdf
http://www.nse.com.ng/Financial_NewsDocs/28197_U_A_C_N__OF_NIGERIA_PLC._FINANCIAL_STATEMENTS_NOVEMBER_2019.pdf

dipoolowoo:
NASD Exchange Places ‘Red Flag’ on 13 Companies
https://businesspost.ng/economy/nasd-exchange-places-red-flag-on-13-companies/

N5.8bn Loan: Omatek to Offer BoI Fresh Payment Option
https://businesspost.ng/technology/n5-8bn-loan-omatek-to-offer-boi-fresh-payment-option/

Agusto Gives Two Nigerian Banks ‘4 Star’ Ratings
https://businesspost.ng/banking/agusto-assigns-4-star-ratings-to-two-nigerian-banks/

MTN Nigeria’s YDFS Launches MoMo Agent in Kano
https://businesspost.ng/general/mtn-nigerias-ydfs-launches-momo-agent-in-kano/

NNPC Not Competing With Dangote Refinery—Kyari
https://businesspost.ng/economy/nnpc-not-competing-with-dangote-refinery-kyari/

Cappa and D’Alberto Shareholders to Share N123m Dividend
https://businesspost.ng/economy/cappa-and-dalberto-shareholders-to-share-n123m-dividend/

Uchetoba:
Those complaining about the uacn result you no de see well?
Can't you see that the actual eps is N3.44 or 344k
What you refer to as loss has to do with the unbundling.
Am a very busy man sometimes I don't have time to type.
I'm really impressed by the result.
Some wise men have already moved the price up while you are busy complaining

Uchetoba:
Those complaining about the uacn result you no de see well?
Can't you see that the actual eps is N3.44 or 344k
What you refer to as loss has to do with the unbundling.
Am a very busy man sometimes I don't have time to type.
I'm really impressed by the result.
Some wise men have already moved the price up while you are busy complaining

Mcy56:
That's what he wants nah.
FO issue took that dimension cos the whole arrangement looks like scam afterall and also, the vol doesnt make sense at all.

locodemy:
Who did this to maybaker?