PEOPLES DAILY, TUESDAY, NOVEMBER 19, 2013
PAGE 22
Business
Unity Bank: New investor talks heighten By A’isha Biola Raji
T
alks between Unity Bank Plc and one of the three venture capital firms that were reported to be showing interest in acquiring a stake in the Bank had reached an advanced stage. Though most details of the deal are still being held in confidence, sources close to the deal have confirmed that not only has the firm completed their due diligence exercise on the bank but the Management of the Bank has
also met with them to review the outcome of the due diligence and agree on positions. Investigation also indicates that the Bank may be finalizing plans to raise about N35 billion to develop the structure needed to drive its retail business through the Issuance of Rights. All of this is in the run up to the upcoming discussions on the price of the bank’s shares to be offered by the investor, which is the last major phase in the deal and which could result in a dramatic soaring
in the price of its shares. Analysts say these initiatives would see a fresh injection of huge capital into the institution that is geared towards catapulting it into one of the major players in the Nigerian banking industry in the very near future. The deal came to limelight in September after investigations revealed that two foreign and one domestic venture capitalist, keen on investing in high potential financial service operators in Nigeria, had been showing interest
in the bank. With the expected conclusion of the deal by December 2013, analysts say total shareholder funds of the 20 Deposit Money Banks would end another year on a strong note. The funds which had reached an all-time high of N2.37 trillion at the end of 2012, representing a 22% increase over 2011’s end of year figures, will definitely receive a boost from this injection and further strengthen the banking sector.
L-R: Chairman, Senate Committee on Power, Senator Phillip Aduda, Director General, National Power Training Institute of Nigeria (NAPTIN), Engineer Reuben Okeke, and representative of Minister of Power, Mrs. Grace Papka, during induction ceremony for trainees into NAPTIN graduate skills development programme, recently in Abuja. Photo: Justin Imo-Owo
FBN Capital to raise funds for companies across sectors in 2014 By Etuka Sunday
F
irst Bank of Nigeria (FBN) Capital has said it would help raise funds for companies across the various sectors of the economy that would require capital to boost their businesses in the coming year 2014. The Managing Director/ CEO, FBN Capital, Mr. Kayode Akinkugbe disclosed this at a media parley held in Lagos at the weekend.
Akinkugbe said FBN would be ready to raise funds both in foreign and local currencies for its clients that would require capital in 2014 given the successful privatization of the PHCN successor companies which is expected to impact on the various sectors of the economy. He said in a statement that, “FBN Capital emerged as the first financial institution to have achieved loan signing (in March 2013) for the federal government’s
power sector privatization. In the last nine months we have assisted various clients in structuring and arranging over US$2.4 billion ($723m power sector + $1.7bn from other sectors) of debt finance. Notable transactions include: US$303 million for Kepco Energy Resource Limited , US$315 million for NG Power – HPS Limited, US$225 million for Accugas Ltd (Gas pipeline infrastructure), US$1.2bn refinancing and
expansion debt for EMTS, US$200 million for a major rig services provider,” he said. Commenting on the objective of the forthcoming conference, Akinkugbe said that the forum will enable local and international institutional investors to interact with key policy makers, regulators and management teams of leading corporate institutions in Nigeria. In his comment on the future outlook, he said, “Looking ahead, we expect ongoing activities in the oil and gas, power, financial services sectors and AMCON divestment of the bridge banks to continue to drive market activities.
DHL, Engen announce major African retail partnership By A’isha Biola Raji
D
HL Express, the world’s leading international express services provider and Engen, Africa’s leading multinational fuel retailer and provider of convenience services, have signed a retail partnership, in a bid to provide customers with better access to global express services. A consumer looking to send documents or parcels overseas can simply walk into an Engen service station to send their
shipment, ensuring greater convenience and accessibility to the powerful global network which DHL offers. This includes all domestic and international shipments to major centres across over 220 countries worldwide. The project, which would be carried out at four Engen service stations in the Namibian capital Windhoek, would be rolled out in phases. Botswana, Ghana, the Democratic Republic of Congo, Kenya and Tanzania are
earmarked for the second phase. Consumers will also be able to take advantage of DHL’s new product offering, Express Easy, at the Engen outlets. Express Easy provides an easy way to send documents or parcels, as consumers can choose an envelope or one of seven box sizes and enjoy a fixed price for that size, rather than paying a rate based on the weight of the parcel. Consumers are simply able to pick their box, pay the fixed rate and send their document or parcel to any of DHL’s global
destinations. Sumesh Rahavendra, Head of Marketing for DHL Express SubSaharan Africa, welcomed the news, saying that it would have a great impact on consumers across the continent. Also speaking, the Managing Director of Engen in Namibia, Nangula Hamunyela, said Namibia “Partnering with DHL means that we can extend our capabilities and give our valued customers the access and affordability around express services that they need.”
Transcorp’s oil block: OPL 281 to start production before end of 2014 By Etuka Sunday
B
usiness Tycoon and Chairman of Transnational Corporation of Nigeria (Transcorp), Mr. Tony Elumelu has announced that the Transcorp’s existing oil block, OPL 281, is expected to begin production before the end of 2014. Elumelu in a letter to shareholders also commended their contributions in the significant progress made by the company in the areas of power, hospitality, agriculture and oil and gas. Giving an update on the recent rights issue by Transcorp, Elumelu said that the company has already made significant progress in key sectors of its business; a development that is already impacting positively on the company’s share price which closed at N3.00 on Friday last week, up from 50 kobo not more than two years ago. Some of the strategic initiatives outlined by the Chairman include the completion of the acquisition of 100% equity stake in the 1000MW capacity Ughelli Power Plc through its subsidiary – Transcorp Ughelli Power Ltd (TUPL). TUPL paid $300m (N48.3 billion) for the complete ownership of the plant. On November 1, 2013, TUPL successfully took over ownership and physical possession of the plant and plans to raise the output from the current 160MW to at least 1,500MW over the next 3 to 5 years. Further significant progress was shown with the signing of an agreement with Hilton Worldwide to commence the development of a 300 room fivestar hotel in Ikoyi, Lagos. This project will commence in the Q1 2014 and complete in 30 months. Just as the Ikoyi project is getting off the ground, Transcorp, and has also completed the acquisition of a site in Port Harcourt for the development of another 300 room five star hotel. “We expect to sign the management agreement in first quarter of 2014 and commence construction by the second quarter,” Elumelu stated in the letter. Another important highlight of the Elumelu communication to shareholders is the news of the production date for Transcorp’s existing oil block, OPL 281, which he said will be expected to begin production before the end of 2014. “This marks a significant progress in the company’s oil and gas strategy” he stated.