NIGERIAN TRIBUNE - Business and Economy

Yar’Adua, Goodluck to declare capital market conference open Friday Ekeoba, Lagos Pricess Vivian Atuanya, representing the Minister of Education, Dr. Igwe Aja-Nwachukwu; Eze Emmanuel Njamanze, Ozuruigbo of Owerri; and Mr. Chime Aliliele, Regional Manager, Abia, Imo, representing Mr. Okey Nwosu, Managing Director/ Chief Executive Officer, First Inland Bank Plc, at an award ceremony in recognition of the bank’s support for education by Tabitha David Care Foundation, in Aba, Abia State at the weekend.President Umaru Musa Yar’Adua and Vice president Goodluck Jonathan will today (Monday) declare open the two-day National conference tagged financing the 7-point agenda of the Federal Government through the Nigeria capital market. President Association of Issuing Houses of Nigeria (AIHN), Mr. Kayode Falowo who is the Chairman Implementation committee for the conference said the conference is poised to redefine the incident of sourcing for fund in financing government projects. The conference which is jointly organised by the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange (NSE) and AIHN ends tomorrow July 8th 2008. Falowo said the conference will provide the platform for mobilizing the business community to embrace the government vision and embrace its realization is expected to draw participation from key stakeholders both local and international, of various sectors of the economy including power, society, education, finance and Agriculture. He said facilitators and resource persons at the event are drawn from within and outside the country who have distinguished themselves in their various field. Falowo noted that, it is no doubt that infrastructure is critical to effective functioning of an economy and improving the living standards/reducing poverty amongst the populace. “It is also important for developing the private sector which is the engine of any economy and positioning of a country for global competitiveness” Falowo who explained that the capital market being a vehicle in achieving the above added that, ironically, poor infrastructure particularly power has been the bane of the nation’s economy despite the huge investment by previous administration. According to Falowo, the country is lagging behind in almost all major infrastructure measurement as a result of inconsistent policies, poor funding, weak legal and regulatory environment that discourage private sector participation and lack of effective implementation strategies to achieve set goals. To this end, he stated that using the instrumentality of the capital market to finance the 7-point agenda of the present administration would bring about accountability, efficiency and further that the money raised from the market are utilised for the purpose it was meant for.

Ikeja Hotels to raise N960 million from the market Friday Ekeoba, Lagos As part of its growth drive, Ikeja Hotels Plc has announced its decision to boost its capital base beyond the current level, as it plans to undertake a public offer before the end of the current year. Speaking during its annual general meeting in Lagos last week, the Chairman of the company, Mr. Goodie Ibru disclosed that the purpose of the new offer is to reduce its indebtedness to the banks and also to finance the upgrade of its Lagos Sheraton Hotels. According to him, “The Company is proposing a new public share offer. The purpose of the new offer is to raise funds to reduce the company’s indebtedness to the banks, so as to reduce the burden of financing charges. Secondly, the proceeds of the proposed offer will be used to upgrade Lagos Sheraton Hotel. The upgrade of the hotel is planned to commence in the first quarter of the next financial year. The Board has recommended a public offer of 960 million ordinary shares of 50 kobo each.” He stated that the price at which the shares are to be offered to the public has not been determined yet, as the Board is awaiting the approval of the regulatory authorities before the determination of the price. The company recorded a profit after tax of N697.8 million in its 2007 financial year results, compared with a profit after tax of N525.94 million in 2006. The company’s turnover grew by 13.8 per cent from N5.3 billion in the year review, to N4.64 billion in 2006, while its operating profit appreciated by 37.8 per cent from N1.30 billion in 2007 to N943.97 million in 2006. It posted a profit before tax of 1.09 billion compared with a profit before tax of 852.77 million in 2006. The company is proposing a dividend of 10 kobo, representing N173.23 million, which is against a dividend of N108 million recorded in 2006. Ibru explained that it decided to retain a sizable portion of its profit due its plans to upgrade its Lagos hotel and carry out other developmental project that will beneficial to it and the country in general in the long run. According to him, “Before recommending the amount for dividend, the Directors took into consideration the need to conserve funds to carry out an upgrade of Lagos Sheraton Hotel, and execute other developmental projects. The upgrade of the hotel is planned to commence in 2009.” He disclosed that plans are on to list on the Nigerian Stock Exchange (NSE) one of its subsidiaries, Capital Hotels Plc, the owning company of Abuja Sheraton Hotel. He stated that the company would be listed by introduction on the NSE, thereby creating ample opportunity for its shareholders to become owners of the company.
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Yar’Adua, Goodluck to declare capital market conference open

Ikeja Hotels to raise N960 million from the market