C&I Leasing Rights Issue FAQ

C&I Leasing Rights Issue FAQ

  1. What is a rights issue?

A rights issue is an offering of rights to the existing shareholders of a company that gives them an opportunity to buy additional shares directly from the company at a discounted price rather than buying them in the secondary market. The company issues new shares to the public in order to raise capital.

But until the date at which the new shares can be purchased, shareholders may trade the rights on the market the same way that they would trade ordinary shares.

  1. Who is C&I Leasing?

C & I Leasing Plc is Nigeria’s foremost leasing company and a leading brand for finance leases, and other ancillary services in Nigeria. The company, which started as a consumer finance leasing company licensed by the Central Bank of Nigeria in 1991, has grown to become a diversified, leasing and business service conglomerate providing support services to various indigenous and multinational organizations in West Africa in:

  • Fleet Management
  • Personnel Outsourcing
  • Marine Services
  1. Why is C&I Leasing raising funds through a rights issue?

C&I leasing wishes to use the proceeds to:

  • Capital restructuring – Ensure optimum capital structure that appropriate balance of debt and equity
  • Repay short term loans
  • Acquire equipment and vessels to expand their marine services business
  • Provide working capital requirements as the needs arise
  1. How much capital is C&I leasing raising?

N3.5 billion

  1. Issue Price:

N6.00 per share

  1. What effect will the rights issue have on C&I Leasing’s shareholders’ equity?

Current existing shares: 404,252,500

Rights shares: 539,003,333

Post rights issue shares: 943,255,833

  1. Issue criteria:

4 new rights for every 3 shares held

Each right entitles the shareholder to 1 new share

  1. Is there a minimum subscription to complete the rights offering?

No

  1. Who is eligible to purchase rights?

Shareholders of C&I leasing at the record date can use their rights to subscribe to newly issued shares

Non-shareholders can buy rights from the market from C&I Leasing shareholders selling their rights at market value

  1. When can I subscribe to the rights issue?

The issue opened on November 17 and closes on December 27

  1. How long will it take for me to get my shares after the rights issue?

CSCS accounts will be credited and Investors will receive share certificates on the 29th of January 2020

  1. How do I subscribe to the rights issue?

Contact customer service at ARM securities at +234 (1) 2701096, 2701653 or [email protected] to gain access to application forms

  1. Can I sell my Rights – can they be traded?

Yes, A right is an option to buy shares, but you are not obligated to do so. You may decide not to exercise your right to purchase all or some of the shares you are entitled to, in which case you can sell all or some of your rights at market value.

C & I Leasing Plc Seeks to Raise N3.2 billion Right Issue

C & I Leasing Plc Right Issue

C & I Leasing Plc is seeking to raise N3.2 billion by way of Rights Issue. The company is offering 539 million ordinary shares of 50 kobo each at a rights price of N6.00/share to existing shareholders based on 4 new ordinary shares for every 3 ordinary shares held as at 4th of September 2019.  The Rights issue opened on the 18th of November 2019 and closes on the 27th of December 2019.

Use of Proceeds

  • Capital Restructuring. Ensure optimum capital structure that appropriate balance of debt and equity.
  • Repayment of Short-Term Loans. Reduction of short-term debt through the redemption of some existing Commercial Papers.
  • Working Capital Needs. Provide working capital requirements as the needs arise.
  • Business Expansion. Acquisition of equipment and vessels to expand the marine services business. Increase in fleet.
  % N Expected Completion Time
Business Expansion 29.2% 943,350,630 18 Months
Refinancing of Loans 58.3% 1,886,701,260 1 Month
Investment in Working Capital 9.7% 314,635,638 6 Months
Issue Expenses 2.8% 89,332,470 Immediately
Total 100.0% 3,234,019,998

About C&I Leasing

The Company was incorporated in 1990 as a limited liability Company and duly licensed by the Central Bank of Nigeria to offer operating and finance leases and other ancillary services.

Over the years, C&I Leasing Plc has enjoyed consistent growth and has expanded its scope of business to cover major sectors of the Nigerian economy, providing specialized services, in Marine, Telecommunications, Oil and Gas, Equipment Rentals, Manpower Outsourcing and Transportation

The Company provides the following services

  1. C&I Marine – a leading Nigerian content player in the offshore marine vessel space, operating a fleet of over twenty vessels that include terminal tugs, patrol vessels, fast support intervention vessels, and a platform support vessel.
  2. C&I Outsourcing – outsourcing services with strength in various Human Resource competencies. They have access to a large database of skilled and experienced hires for both permanent and temporary roles ranging from Engineers to direct sales agents, diverse professionals, and consultants.
  3. C&I Fleet Management – structured fleet management business support service designed to meet the diverse needs of clients regardless of the number of cars they own
  4. SDS Training Services – accredited training institute and associate member of the International Federation of Training and Development Organizations providing carefully designed modules of training and education programs
  5. CITRANS Telematics Solutions – Nigeria Communications Commission (NCC) licensed provider of unique fleet management solutions to suit various business needs. The platform offers a hardware configuration that includes a built-in accelerometer for intelligent driver behaviour with all its applications monitored remotely from a web-based software.

The Company has two (2) subsidiaries;

  • Leasafric Ghana Limited

Leasafric Ghana Limited was incorporated in March 1992 and licenced by the Bank of Ghana as a non-bank financial institution to carry out the business of finance leasing as its principal business. Leasafric has since then been running an Asset Finance business using the technique of finance leasing.

  • EPIC International FZE

This asset-based subsidiary was incorporated in 2011, as a free trade zone establishment in United Arab Emirates and licensed to trade in ships and boats, ships and boats spare parts, components and automobile and it commenced operations fully in 2014 with four vessels. The vessels are then chartered from C & I Leasing by the various international oil companies. This arrangement has expanded and helped grow the fleet size of C & I Leasing to 22 vessels currently.

Evolution of C&I Leasing

 

Financial performance

Revenue, PBT, and Shareholder’s Fund (N ’billions)

What to do with your rights

  • Subscribe to the rights issue to purchase in full:

To take advantage of the rights issue in full, you would need to pay the full amount according to the number of shares you are allowed to purchase. As you are getting the shares at a discounted price the average share price would be lower than the total current market value. So, if you buy those shares and sell them immediately then also you would be in a profit.

  • Sell your rights to other investors:

In most cases, your rights allow you to choose whether you want to buy those shares or sell your rights to other investors or to the underwriter.

For more Information…

Contact customer service at ARM securities at +234 (1) 2701096, 2701653 or [email protected] to gain access to application forms

FGN SAVINGS BOND – DECEMBER 2019 AUCTION

The December 2019 Auction opened today December 2, 2019 and closes on Friday, December 6, 2019. Please find the details stated below.

N

 Subject Features

1

 2 Year FGN SavingsBond 9.091% per annum

2

 3 Year FGN SavingsBond 10.091% per annum

3

 Tenor 2 or 3 years

4

 Settlement Date Wednesday, December 11, 2019

HOW TO INVEST IN THE FGN SAVINGS BOND

  1. Ensure you have a CSCS Account Number with ARM Securities. If you haven’t any, open an account online at ARM Stocktrade or fill this form and submit at any of our offices.
  2. Print/download and carefully fill the portions of the FGN Savings Bond application form relevant to you.
  3. Transfer the amount you intend to invest into the following bank account detailed below:
Bank Details. Account Name:

ARM Securities Ltd
GTB UBA Zenith Diamond
0002962204 1015290060 1011558489 0001983873

Please note that we do not accept cash payment.

Submit the completed form(s) to ARM Securities at customerservice@armsecurities.com.ng (or office drop-off) before 5:00pm on Thursday December 5, 2019.

To enjoy this new opportunity, or learn more about the FGNSB, please contact us at customerservice@armsecurities.com.ng or call us on 012715000, 0700CALLARM (0700 2255 276).

We look forward to hearing from you soon.