Presco’s Ghanaian Deal
4 Customs Street: 10 Jun 2024
Welcome to this week’s edition of 4 Customs Street, our weekly newsletter on the stock market.
The newsletter is divided into two parts:
Green White Green is focused on the Nigerian stock market.
Star-Spangled Banner is focused on the US stock market
Green White Green This Week
Presco’s impending deal
Presco (a firm in the oil palm space) released an explanatory statement on its proposed acquisition of a 100% equity stake in Ghana Oil Palm
Company (GOPDC). GOPDC is a unit of Siat, a key shareholder in Presco.
Presco has made an offer to acquire 70.5 million shares at $1.77 per share from Siat. They will pay $64.9 million now and the balance at a later date.
In the statement, the firm outlined a number of benefits of the proposed transaction. They include increased market share, currency diversification and increased competitiveness.
Adjustments
Fidelity Bank has revised the offer prices for its proposed rights and equity issue.
Initial application to the NGX was for the approval and listing of a Rights Issue of 3,200,000,000 each at N10 per share on the basis of 1 new share for every 10 shares held as at the close of business on Friday, January 5, 2024; and Offer for Subscription of 10,000,000,000 shares of N10 per share.
The bank has informed NGX Regulation Limited (NGX RegCo) that the offer prices have been revised and that the Securities and Exchange Commission has approved the new prices.
The rights issue will go for N9.25 per share and the offer issue will go for N9.75.
Notore announced a raft of board changes
Jite Okoloko, Mike Orugbo, Michael Osime, Ikeme Osakwe, Mike Jansa, Femi Agbaje, Ebiaho Emafo (an ED), and Omar Taha resigned from the board.
Thomas Etuh has been appointed board chairman, and Danjuma Abdul-Kadir Etuh as deputy managing director (DMD).
Henry Imasekha, Femi Edun, Vivien Shobo, Nelson Attah, Theophilus and Ishaya Danjuma as non-executive directors.
Green White Green This Week
We should have some more insight into when the Fidelity issues will be opening as well as Access Holdings.
Neimeth International Pharmaceuticals will hold a facts behind the numbers session during the week.
Star-Spangled Banner Last Week
Nvidia hit a record market capitalisation of $3 trillion. Market cap is the figure you get when you multiply the number of shares issued by a company with its share price.
Star-Spangled Banner This Week
Apple will hold its annual developers conference and the expectation is that they will have some announcement around AI.
Tesla shareholders will meet on Thursday during the company's annual meeting to vote on a few proposals including one to consider a humongous compensation package for founder Elon Musk that gives him the right to buy up to 304 million shares at a preset price of $23.34, amounting to $46 billion.
If it scales through, it would be the largest compensation plan in US corporate history.
J Poww Day
Wednesday is J Poww Day (J Poww is a nickname for Jerome Powell who chairs the US central bank). The committee that decides interest rates will be meeting on Wednesday. Expectations are that interest rates will be left unchanged. Many analysts have adopted the position that they would only be raised once or twice this year.
An interest rate hike is a big deal because the US is a largely credit economy (which isn't a bad thing if one has regular income). So, a higher interest rate affects things like your auto loan, mortgage loan and even loans for consumer goods like cell phones.
Earnings wise, it's a pretty quiet week. Broadcom and Adobe will drop their most recent quarterly earnings.
***
Would you like to know the state of your finances?
Take this test to see how you are doing financially
***
Do you know that we have our own podcast? It’s MONEYTALKS!💚
Here’s a link to listen to all the amazing episodes we have!
***
Do you have any questions? You can send an e-mail to info@themoneyafrica.com or send a DM to any of our social media channels.
***
MoneyAfrica premium plan
Are you a mid to high-income earner? Do you find communities a bit too busy? You should sign up for our premium plan.
You can learn more about that here
***
We often get questions regarding how to plan your finances to align with your relocation plans, especially for students seeking to further their studies. As always, we have heard you, and we have put together an e-book to help you navigate this. Follow this link, to get your FREE copy of the e-book: The Japa Encyclopedia.
***
Get our annual subscription and learn more about investing safely and building a solid portfolio in 2023.
Don’t forget to:
Join our community, if you want to smash your 2024 financial goals. It takes at least 30 days to build great habits that will last you a lifetime. So why not start now? There is a lot you can achieve.
If you would like to document your financial journey in 2024, then our journal would be an excellent fit for you. It costs ₦7,500 (excluding delivery).
Get a budget sheet to track your monthly expenses. Click here
Get an investment tracker to be on top of all your investments. Click here
MoneyAfrica is a financial literacy platform. Our goal is to make everyone better with their finances.
We do this by engagements via our:
- social media handles
- platforms for paid community members (for adults and students)
- webinar sessions with corporate clients
Would you like to join any of the communities? Please click here
Would you like us to hold a webinar for your company's staff? Please send an email to info@themoneyafrica.com
