MTN Nigeria, FCMB and Nigerian Breweries make stocks to watch list
Trading in the Nigerian stock market resumes on Monday, with MTN Nigeria, FCMB and Nigerian Breweries making the list of stocks to watch.
Ripples Nigeria stocks watchlist is a selection of stocks monitored for viable trading or investing opportunities. An investor may casually generate a list of equities for investment purposes. But we have taken the pain to do that based on certain parameters in order to save you that hassle.
Kindly note that Ripples Nigeria Stocks Watchlist is not a buy, sell or hold recommendation. It is advisable to consult your financial advisor before making any investment decision.
The telecommunications company has proposed a new way to pay shareholders dividends in a bid to increase and stop the depletion of its capital base.
MTN Nigeria proposed a scrip dividend plan to enable shareholders to choose shares as payment for their dividend instead of cash.
The company said shareholders voting to receive shares will help MTN Nigeria retain more cash for operation, reducing their dependence on loans.
Also, MTN Nigeria is planning on merging its subsidiaries, Momo Payment Service Bank Limited and its digital arm, Yello Digital Financial Services Limited (YDFS) to form one company.
The implementation of the new dividend and the merger of the companies will be put to vote at the annual general meeting in April 2023.
FCMB has approached the capital market to borrow N20.68 billion under the firm’s N300,000,000,000 debt bond issuance programme.
READ ALSO:MTN Nigeria proposes merger of Momo, Digital Financial Services
The financial institution said the loan will improve its liquidity or enhance the company’s total capital adequacy ratios and be used to finance its operation,
FCMB borrowed the loan from finance corporates, other financial institutions, trustees and high net-worth individuals.
The loan will increase FCMB’s issued debt securities which were N84.55 billion as of December 31, 2022, and will increase the debt burden on the firm’s revenue.
The alcoholic and soft drink producer is facing a series of lawsuits that could lead to Nigerian Breweries losing 17.9 per cent of its net profit.
Nigerian Breweries said the pending litigation and claims from the lawsuit is valued at N2.5 billion, but said the opinion of the firm’s directors and based on independent legal advice, the risk of loss is lower than 50 per cent.
The pending litigation and claims are for the period of 2022, and they increased from the N1 billion lawsuits a year before to N2.5 billion.
This was revealed by the company in its financial statement for last year. The lawsuits are a risk to Nigerian Breweries’ turnover and impact its ability to pay dividends if the cases are lost – a situation that could affect shareholders and the capital market’s confidence.
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