11 Dec

Daily Watch – Mass tender trails NNPC insurance renewal, 7up mulls mega decision

  • The NNPC says 577 firms have indicated interest to secure the insurance renewal contract for its oil and non-oil assets. Spokesman Ndu Ughamadu, said the bidding was part of its efforts to ensure transparency. Group General Manager (Risk Management and Insurance), Modupe Bameke said the bidding was also a BPP requirement and the public opening bids measure is aimed at providing a level playing field for all bidding companies. About 245 brokers tendered for oil assets, 251 brokers tendered for non-oil assets while 37 insurance companies tendered for oil assets and 44 tendered for non-oil assets.
  • MTN did not make it the final list of five companies bidding to buy for 9mobile, according to a report by the news website, TheCable. The top five bidders who made it to the next stage of the bid are Airtel, Globacom, Smile, Helios, and Teleology Holdings Limited. A buyer will be named in a matter of weeks. TheCable quotes 9mobile CEO, Boye Onasanya as saying that the company will have more extensive discussions with the shortlisted parties, as the company closes in on its final bidder. Sixteen companies had tendered expressions of interest to Barclays, 9mobile’s financial advisor.
  • Communications minister Adebayo Shittu says the FG has approved a partial sale of NIPOST. The minister made the disclosure while inaugurating the steering committee and the project delivery team for the postal sector reforms and NIPOST’s restructuring/modernisation. He said the National Council of Privatisation under the chairmanship of Vice-President Yemi Osinbajo had set up a steering committee to ensure NIPOST was “partially” commercialised. Shittu said NIPOST will operate as a commercial entity with a strong corporate brand after the committee finishes its work in April. The steering committee is headed by the minister while the project delivery team will be headed by Aliyu Maigari of the BPE.
  • Flour Mills of Nigeria has filed an application to the NSE to raise ₦39.86 billion ($127 million) via a share sale to existing shareholders, the bourse said on Friday. The flour manufacturer plans to sell 1.47 billion ordinary shares at ₦27, a 21 percent discount to Friday’s market price of ₦34.13. It would offer nine new shares for every 16 already held via a rights issue.
  • Seven-Up Bottling Company will hold a meeting of shareholders in January to approve a bid by majority investor Affelka to buy out minorities in a ₦19.33 billion ($61.5 million) takeover. Affelka, the investment firm of the Lebanese El-Khalil family, would not vote at the 11 January meeting which has been ordered by the court to decide on the buyout, the soft drinks bottler said in a note to shareholders. Vice Chairman Sunil Sawhney told Reuters last week that Seven-Up Bottling Company had received an offer from its majority shareholder after posting losses and the deal was to restructure the 7-Up, Pepsi and Mirinda distributor. Shares in Seven-Up Bottling Company gained 5 percent on Friday to ₦101.97. Privately-held Affelka offered to acquire the 26.8 percent stake or 171.5 million shares it did not already own at ₦112.70 per share.