By Peter Egwuatu
Value Capital Limited has concluded arrangement to list its shares on the Nigerian Stock Exchange(NSE) after a successful private placement, just as it declared N43.6 million dividend for the financial year ended December 31, 2009. This translated to 1.1 kobo per share. The Chairman, Value Capital, Elder Sam Enyinnaya disclosed this at the company’s second Annual General Meeting (AGM) held last week in Lagos.
Speaking at the AGM, he said, “ We have submitted our application and other documents to the regulatory authorities in the capital market to ensure we list our company by June 2011. We hope to get approvals from the regulatory authorities and barring any unforseen circumstances we would list the shares on the Exchange next year”.
He commended the shareholders for the confidence reposed on the management and Board of the company for effectively managing their investments.
Commenting on the state of the economy during the period under review, Enyinnaya said, “ CBN policies brought sanity into the banking systems; however the policies did not immediately create economic activities that will enhance employment in various sectors of the economy.
“Banks are still in a position of sit and watch as they are not lending much and are also not aggressive in chasing deposits. The banks are enjoying the monopoly of being the strong source of finance for business activities as the pay very low interest rates on deposits”.
On the state of the capital market, the Chairman stated that with the Asset Management Company of Nigeria (AMCON) in place to get rid of the toxic assets in banks, it is hoped that its strategies will stabilise the capital market and remove speculative bubbles from it .
According to him, “ When that is done, share prices will now effectively reflect fundamental factors of the relevant companies”. Continuing he satated “the fundamentals of quoted companies like First Bank Nigeria Plc, Zenith Bank Plc, Guaranty Trust Bank Plc, Nestle Nigeria Plc etc are good. So we hope that the market will bounce back as the Securities and Exchange Commission (SEC) and NSE have taken steps to curb market infractions, speculative activities and strengthening of corporate governance in quoted companies”.
A shareholder who spoke the minds of others present at the meeting, Chief S.Uzendu, commended the management and Board for their pro-activeness which has resulted in declaring dividend for the year under review.
According to him, “ we are happy for the dividend, though small. We all know how the stock market has nosedived and not profitable to invest as prices of shares have fallen to a very low level. So we thank the Board and management for the diversification strategies put in place. ”
The company is into Real Estate, Capital Market operations, Equipment Leasing ,Foreign Exchange transactions etc. This is time for investors to buy into some of these companies that have good fundamentals and whose prices are low. We should remove our mind that the stock market will bounce back soon and invest for long term, with the hope to get better results from 2012”.
Meanwhile, at the AGM, six members were elected to the audit committee in accordance with the provision of the Companies and Allied Matters Act (CAMA);three members from the management team while the other three were from shareholders representative.
The members are : Pastor Erem O. Erem, Ifedi F. Chukwuma, Chief Irem Ebillah, Chief S. Ezendu, Emeka Ndukwe and Victor C. Akoma.