Stockmarket Tips For Nigerians

[samstone4]

The problem with the $2.5bn valuation for nitel is exactly what are u getting? Even without any liabilities and without the real estate, d price is extremely high considerin they still need substantial amounts to revive nitel, have to battle with the loss of subscribers to competition n loss of the SAT3 monopoly.  

$2.5B is way too high and the Thisday article did a reasonable job of stating this fact.  The only people that think NITEL is worth $2.5B are NewGen and our dear CMDR    

CMDR, if you had $2.5B would you use it to buy NITEL?

@ Shak, Bandido, NNs,

If you had a lot of money and wanted a diversified portfolio you could invest in a long term money spinner, believe or not, even if only your children will reap the profit.

Businessmen prefer to get the profit now but good businessmen are also prepared to wait. Good corporations are prepared to wait even longer. That is why businesses are often bought for their future earnings capacity. Someone with the long term funds can decide to buy Nitel in anticipation of good returns which will steadily climb after initial investment in revitalising. Given good management and no government interference.

There is also the other possibility of using the investment to launder money - which is likely to be the case if Nigerians are the real funders of the bid.

Anyways, fingers crossed - like the school girl said the morning after the night before - we wait for payment.

Samstone4
Alakoso...

[shakabula]

The problem with the $2.5bn valuation for nitel is exactly what are u getting? Even without any liabilities and without the real estate, d price is extremely high considerin they still need substantial amounts to revive nitel, have to battle with the loss of subscribers to competition n loss of the SAT3 monopoly.  

$2.5B is way too high and the Thisday article did a reasonable job of stating this fact.  The only people that think NITEL is worth $2.5B are NewGen and our dear CMDR    

CMDR, if you had $2.5B would you use it to buy NITEL?

@ Shak, Bandido, NNs,

If you had a lot of money and wanted a diversified portfolio you could invest in a long term money spinner, believe or not, even if only your children will reap the profit.

Businessmen prefer to get the profit now but good businessmen are also prepared to wait. Good corporations are prepared to wait even longer. That is why businesses are often bought for their future earnings capacity. Someone with the long term funds can decide to buy Nitel in anticipation of good returns which will steadily climb after initial investment in revitalising. Given good management and no government interference.

There is also the other possibility of using the investment to launder money - which is likely to be the case if Nigerians are the real funders of the bid.

Anyways, fingers crossed - like the school girl said the morning after the night before - we wait for payment.

Samstone4
Alakoso...

CMDR,

The first rule of making money is not to over-pay for an asset, because your chances of ever making money decline considerably or vanish totally.  Oracle is in all respect an excellent company.  The chap that bought Oracle for $45 at its peak in 2000 during the bubble is still sitting on a 45% loss a decade later, all because he bought a good company at an inflated price.  

Remember the go-go world of the late 1990s and early 2000s in the European telecom sector, especially as it relates to acquisition of 3G licences?  3G was supposed to be a money spinner.  Vodafone paid 14B pounds for its global 3G licences; it had to write off at least 4B of that value; Deutsche Telekom wrote down 50% of the 5B pounds it paid for its license; BT worte off 7B pounds from the 10B pounds it paid for licenses in the UK and Germany.  You don't make money on an asset when you overpaid for it in the first instance.

No one doubts that NITEL might or will make money, the crux of the matter is how much should you pay for the right to those future earnings?  If you buy an asset for $2.5B and make $5B over the next 100 years (the life of the asset), you have indeed made money, but is that the best use of your $2.5B?  

$2.5B is a high price to pay for NITEL in my humble opinion.  Anything beyond $600M is a long stretch, but what do I know?  

I hereby rest my case.

Shakabula  
ADC to the Alakoso

[shakabula]

If its nigerians financing d deal, then I may start doubting my previous believe that the money will not be paid. We have a lot of nigerians that have looted the treasury with more money than sense who do not know wat to do with it. Nice article on thisday about nitel sale dead on arrival.

@ Bandido,

Read the story last night.
The sale is shaky. The only viable explanation I can think of is that the NewGen is a front for some Nigerians. It seems they all bidded quite low than it was announced that the sale is without liabilities and the price offered shot up to 2.5 Billion. The buyers probably expect that if they pay the 2.5 Billion dollars they will be left alone, which I think they should. It will still be a money spinner for generations to come. Anyone ever wondered how much Globacom has invested and when they expect to break even?

Samstone4
Alakoso...

Mr. Adenuga did not pay $2.5B for his license (I think he paid $400M or so).  Whoever buys NITEL must make similar investment Adenuga made to build a network, on top of the $2.5B

[samstone4]

If its nigerians financing d deal, then I may start doubting my previous believe that the money will not be paid. We have a lot of nigerians that have looted the treasury with more money than sense who do not know wat to do with it. Nice article on thisday about nitel sale dead on arrival.

@ Bandido,

Read the story last night.
The sale is shaky. The only viable explanation I can think of is that the NewGen is a front for some Nigerians. It seems they all bidded quite low than it was announced that the sale is without liabilities and the price offered shot up to 2.5 Billion. The buyers probably expect that if they pay the 2.5 Billion dollars they will be left alone, which I think they should. It will still be a money spinner for generations to come. Anyone ever wondered how much Globacom has invested and when they expect to break even?

Samstone4
Alakoso...

Mr. Adenuga did not pay $2.5B for his license (I think he paid $400M or so).  Whoever buys NITEL must make similar investment Adenuga made to build a network, on top of the $2.5B

@ Shak,

In any auction the best price to win is the second highest bid plus 1 dollar. I don't know exactly what Nitel is worth but my suspicion is more than is commonly touted. Sure NewGen wishes it had bid what Omen offered plus 1 dollar.
Don't think the owner of Nitel will have to spend as much as Globacom to get a good and more extensive network.

Samstone4
Alakoso...still accumulating TC in these lean times.

[shadoghale]

@Gurus,

Has GT Bank come out with their end of year 2009 - 2010, any Div or bonus? any Mark down yet???

Please update us. Thanks

[shakabula]

@Gurus,

Has GT Bank come out with their end of year 2009 - 2010, any Div or bonus? any Mark down yet???

Please update us. Thanks

@Shad...

No results yet from GTB.

[gmoni]

The problem with the $2.5bn valuation for nitel is exactly what are u getting? Even without any liabilities and without the real estate, d price is extremely high considerin they still need substantial amounts to revive nitel, have to battle with the loss of subscribers to competition n loss of the SAT3 monopoly.  

$2.5B is way too high and the Thisday article did a reasonable job of stating this fact.  The only people that think NITEL is worth $2.5B are NewGen and our dear CMDR    

CMDR, if you had $2.5B would you use it to buy NITEL?

@ Shak, Bandido, NNs,

If you had a lot of money and wanted a diversified portfolio you could invest in a long term money spinner, believe or not, even if only your children will reap the profit.

Businessmen prefer to get the profit now but good businessmen are also prepared to wait. Good corporations are prepared to wait even longer. That is why businesses are often bought for their future earnings capacity. Someone with the long term funds can decide to buy Nitel in anticipation of good returns which will steadily climb after initial investment in revitalising. Given good management and no government interference.

There is also the other possibility of using the investment to launder money - which is likely to be the case if Nigerians are the real funders of the bid.

Anyways, fingers crossed - like the school girl said the morning after the night before - we wait for payment.

Samstone4
Alakoso...

CMDR,

The first rule of making money is not to over-pay for an asset, because your chances of ever making money decline considerably or vanish totally.  Oracle is in all respect an excellent company.  The chap that bought Oracle for $45 at its peak in 2000 during the bubble is still sitting on a 45% loss a decade later, all because he bought a good company at an inflated price.  

Remember the go-go world of the late 1990s and early 2000s in the European telecom sector, especially as it relates to acquisition of 3G licences?  3G was supposed to be a money spinner.  Vodafone paid 14B pounds for its global 3G licences; it had to write off at least 4B of that value; Deutsche Telekom wrote down 50% of the 5B pounds it paid for its license; BT worte off 7B pounds from the 10B pounds it paid for licenses in the UK and Germany.  You don't make money on an asset when you overpaid for it in the first instance.

No one doubts that NITEL might or will make money, the crux of the matter is how much should you pay for the right to those future earnings?  If you buy an asset for $2.5B and make $5B over the next 100 years (the life of the asset), you have indeed made money, but is that the best use of your $2.5B?  

$2.5B is a high price to pay for NITEL in my humble opinion.  Anything beyond $600M is a long stretch, but what do I know?  

I hereby rest my case.

Shakabula  
ADC to the Alakoso

@SHak,
Look what u've done now, just when I thought I've gotten over the 2000 bubble burst here you come trying to open old wounds, however, gr8 analysis.

[samstone4]

@ NNs,

Good news for an ole TC mate of mine, Bernard SS Longe. He was forced to step down as MD of Transcorp at flotation due to him having been dismissed as MD of 1st Bank:

"Supreme Court re-instates Sacked First Bank Chief

March 5, 2010 07:42PM

The Supreme Court today reinstated Bernard Longe as Managing Director/Chief Executive of the First Bank of Nigeria, more than eight years since he was relieved of the post. George Oguntade, the presiding judge, said in his 28-page unanimous judgement, which was concurred by four other justices, that Mr. Longe?s removal by the management of the bank was illegal, as it violated the provisions of section 266 (1) and (2) of the Companies and Allied Matters Act, (CAMA). Mr. Longe was consequently granted five relieves sought as grounds of his appeal, including that the board of directors erred in its decision to hold a meeting where Mr. Longe was sacked without notifying him; and that any decisions taken at the meeting including any appointment to the office of Managing Director/CEO, was unlawful."


Samstone4
Alakoso...

[wanaj0]

Happy investing all

No one will pay $2.5b for Nitel

The banks result should be out towards the end of this month. GTB is poised to be the first to come out. Most will take a beating but there is value in the non SLS banks.

For those that love insurance stocks, they are doing well and will continue to do well provided you are not into IIA and the likes.

For those that like CICO, watch UNIC closedly. Below N0.70 is always a good time to enter. 25% is there to make easily.

And for the long termers, penny stocks with great value are there to take.

Before I forget, DSR and Ashaka should come out with bad result, take some beating BUT still holds value going forward

Good returns already made this year. Many still to be made.

Hopefully, lessons learnt the past three years will not be lost. Would advice that we all write down the lessons learnt. We will still need them.

[gmoni]

Happy investing all

No one will pay $2.5b for Nitel

The banks result should be out towards the end of this month. GTB is poised to be the first to come out. Most will take a beating but there is value in the non SLS banks.

For those that love insurance stocks, they are doing well and will continue to do well provided you are not into IIA and the likes.

For those that like CICO, watch UNIC closedly. Below N0.70 is always a good time to enter. 25% is there to make easily.

And for the long termers, penny stocks with great value are there to take.

Before I forget, DSR and Ashaka should come out with bad result, take some beating BUT still holds value going forward

Good returns already made this year. Many still to be made.

Hopefully, lessons learnt the past three years will not be lost. Would advice that we all write down the lessons learnt. We will still need them.

@wannajo,
Good to hear read from you, good to know that you are still out there, a lot of us got chased too far away by the bears.
Point well taken, I stil believe in the stock market, just that my fate got shaken to the tripod by the shenanigans that goes on with anything Nigerian, just when you think that things have changed for the better, they turn out to be worse.

[samstone4]

Happy investing all

No one will pay $2.5b for Nitel

The banks result should be out towards the end of this month. GTB is poised to be the first to come out. Most will take a beating but there is value in the non SLS banks.

For those that love insurance stocks, they are doing well and will continue to do well provided you are not into IIA and the likes.

For those that like CICO, watch UNIC closedly. Below N0.70 is always a good time to enter. 25% is there to make easily.

And for the long termers, penny stocks with great value are there to take.

Before I forget, DSR and Ashaka should come out with bad result, take some beating BUT still holds value going forward

Good returns already made this year. Many still to be made.

Hopefully, lessons learnt the past three years will not be lost. Would advice that we all write down the lessons learnt. We will still need them.

@wannajo,
Good to hear read from you, good to know that you are still out there, a lot of us got chased too far away by the bears.
Point well taken, I stil believe in the stock market, just that my fate got shaken to the tripod by the shenanigans that goes on with anything Nigerian, just when you think that things have changed for the better, they turn out to be worse.

@ Wanajo,

Glad to see the Field marshall has not totally gone awol when the battle is hardest.
We need your information here.
Shak and Pump have done very well and I have give them several mentions in my reports. Pump has taken a rest these past 2 weeks.
Welcome. Hope you're back to stay. Market bottomed several months ago and we are all bottom feeders in preparation for long term boom.

@Gmoni,

You're right, the extent of the market manipulation caught almost everybody by surprise. From what I hear the 80% of money recovered so far by the distressed banks has been by EFCC. Hope Jonathan/Danjuma give the war on corruption back it's teeth. Removing Aondakaa was a brilliant first step and Danjuma made the right noises at the inauguration of the PAC. Fingers crossed like somebody, don't remember who, once said.

Samstone4
Alakoso....

[samstone4]

@ NNs,

Did anyone know about Brymedia and this overland cable to Europe?

"Brymedia West Africa Bids to Build Overland Fiber Cable (OFC) from Nigeria to Tunisia; Telecom Italia Indicates Interest in Landing Cable on Mainland Europe

Fiber Optic CableBrymedia West Africa, one of the firms bidding to take-over Nigeria?s NITEL and MTel is planning to build an overland fiber cable (OFC) from the Nigerian state of Katsina through to Tunisia.

The source said the overland fiber cable would pass through two countries instead of 13 countries. This will be achieved with the aid of tails to be laid into land-locked countries, such as Chad, Niger, Burkina Faso, and Mali.

Sources close to the project said that Telecom Italia, one of the biggest operators in Europe, has already indicated interest to land the overland fiber cable into mainland Europe.

The sources further disclosed that the proposed cable would outperform existing cables, like the SAT-3, and the upcoming Glo-1. The overland fiber cable is estimated to be half as expensive as SAT-3 or Glo-1, allowing savings to be passed on to customers via lower tariffs.

Brymedia West Africa is the project coordinator, bid manager, and consortium leader for bidding in the current privatization process for NITEL. Brymedia West Africa, formed in mid-2008 to address the emerging national operator opportunity in Nigeria, has assembled a top flight executive team including six of the nine most senior MTN Nigeria leaders from 2001 to 2006."

Samstone4
Alakoso...

[samstone4]

@ NNs,

Dividends news from Wapco:

"WAPCO, Abbey Declare Dividends
By Goddy Egene and Eromosele Abiodun, 03.07.2010

Lafarge WAPCO Cement Plc and Abbey Building Society Plc last week announced dividends for  the 2009 financial year, thereby boosting the liquidity position of their shareholders.

Nigerian Stock Exchange (NSE) said in its weekly report that the Board of Directors of Lafarge WAPCO has recommended a dividend of N0.10 per share for the year ending December 31, 2009. Similarly, the Board of Directors of Abbey Building Society has recommended a dividend of N0.04 for the year ended October 31, 2009.

Although NSE did not make available the details of the audited results, it said that the date of closure of register of members of Lafarge WAPCO in respect of the dividend is May 17, 2010 while payment date is May 26, 2010.
While some market operators said the dividend by Lafarge WAPCO is low, compared with the N0.60 paid last year, others said it is better than not paying anything all. They explained that the slash in the dividend could be due to the expansion programme, which is capital intensive.

The cement manufacturing firm got a N45 billion loan from 13 banks last year to finance the expansion project.  Stanbic IBTC Bank Plc, Guaranty Trust Bank and Standard Chartered Nigeria Limited led the consortium.
Commenting on the facility, which was structured to support Lafarge WAPCO?s growth strategy of strengthening Nigeria?s

domestic cement production, Managing Director of the company, Mr. George Lourandos, had said: ?The deal is very significant because the Lakatabu project and many others like it is our company?s exercise in foresight. The deal shows that we are making progress on this project and we will continue to deal with its future.?

Also, Abbey Building recently secured a $10 million convertible loan from the Netherlands Development Corporation Company otherwise known as FMO, which would be used to enhance housing and mortgage facilities and estate developers as well as corporate organisations in their housing needs.

The Managing Director/Chief Executive Officer of Abbey Building Society Plc, Mrs. Rose Okwechime, said that would go a long way in improving Nigeria?s ever increasing housing needs, enhance home ownership and generate employment.
Stock dealers said that these financial supports should lead to better results and eventual higher return to investors in the years to come.
Meanwhile, Honeywell Flour Mills Plc has recorded a turnover of N26.2 billion for the third quarter ended December 31, 2009, as against N21.1 billion in the comparable period of 2008. Profit after tax soared by 307 per cent from N214 million to N871 million in 2008."

Samstone4
Alakoso...

[sanctasima]

@Gurus,

Has GT Bank come out with their end of year 2009 - 2010, any Div or bonus? any Mark down yet???

Please update us. Thanks

@Shad...

No results yet from GTB.

Results from bank may not come dat soon as the result will pass thru many regulators b/4 approval; CBN, SEC, EFCC, NSE. Bank results may come no sooner than MAY

[shakabula]

UPDATE 1-Nigeria privatisation boss suspended-presidency | News by Country | Reuters

[samstone4]

UPDATE 1-Nigeria privatisation boss suspended-presidency | News by Country | Reuters

@ Shak, NNs,

I think this article is interesting enough to paste here.
What is this suspension when it was annouced a few weeks ago that he was retiring, indeed that he retired after the bids for Nitel.  was surprised to hear subsequently that he appeared before the house committee:

"UPDATE 1-Nigeria privatisation boss suspended-presidency
Mon Mar 8, 2010 9:03pm GMT

* Suspension comes weeks after Nitel confusion

* BPE approved $2.5 billion bid for telecoms firm

By Felix Onuah

ABUJA, March 8 (Reuters) - The head of Nigeria's privatisation agency was suspended on Monday, weeks after confusion emerged over the planned sale of former state telecoms monopoly Nitel.

A presidency spokesman confirmed that Acting President Goodluck Jonathan had approved the suspension of Christopher Anyanwu from his position as Director General of the Bureau of Public Enterprises (BPE), but gave no reason for the move.

"I can confirm to you that he is now under suspension," Ima Niboro said, without commenting further.

The BPE is responsible for overseeing the privatisation of Nitel, a process which last month became bogged down in confusion over the financial backers for a $2.5 billion preferred bid approved by the body.

The preferred bidder for Nitel was announced on Feb. 16 and Nigeria said the consortium included Unicom (0762.HK), China's second biggest carrier, little known Dubai company Minerva and a small local carrier.

Doubts arose when Unicom initially denied any involvement, but the Chinese firm later acknowledged its European unit had shown interest in joining the group bidding for Nitel although it had never entered formal negotiations.

Uncertainty over the bid also arose because of the mysterious identity of the group in Dubai which the consortium said would provide much of the financing for a bid that was five times higher than many analysts believed Nitel was worth.

The National Council on Privatisation (NCP) -- the BPE's governing body of which Acting President Goodluck Jonathan is the chairman -- said two weeks ago it had cleared up confusion over the $2.5 billion bid, allowing it to go for final approval.

The NCP said the bid had been examined by its technical committee and it was satisfied due process had been followed to the highest international standards.

Nigeria has been trying to sell Nitel for almost a decade and the controversy over the latest effort to do so is embarrassing for sub-Saharan Africa's second biggest economy. (For more Reuters Africa coverage and to have your say on the top issues, visit: af.reuters.com/ ) (Writing by Nick Tattersall; editing by Ralph Boulton)"

Samstone4
Alakoso...

[samstone4]

@ NNs,

More Nitel rumours:

"NITEL: FG May Lose $1.5bn
From Onwuka Nzeshi in Abuja, 03.09.2010

The Federal Government may lose over $1.5 billion in the ongoing NITEL/Mtel Privatisation deal following moves by some interest groups to stir up fresh controversy and frustrate the issuance of the letter of offer to the preferred bidder, New Generation Telecommuni-cation Consortium of China.
The unnamed interest group, THISDAY learnt, has been working on the theory that  the National Council On Privatisation could be manipulated into not issuing  the letter to the preferred bidder in the transaction, the reserved bidder, Omen International Consortium.

New Generation won the bid with an offer of $2.5 billion for 75 per cent stake in NITEL/Mtel, while the reserved bidder, Omen International Consortium offered $956. 9 million for the same equity stake in the former telecom monopoly.
The Technical Committee of the National Council on Privatisation (NCP) had on   February 24, 2010 approved that the letter of offer ?be issued to New Generation Consortium immediately? but that order is yet to be carried out twenty days after the Financial Bid Opening which held on February 16, 2010. The Privatisation Act stipulates that the issuance of letter of offer to preferred bidders must be done within seven working days after the offer has been announced. 

The Bureau of Public Enterprise (BPE) in a letter  dated February 24, 2010 and addressed to the Acting President,  Dr. Goodluck Jonathan  urged the National Council on Privatisation  to ?considers and approve that New Generation Telecommunication Consortium be issued an offer letter wherein they will be required to pay 30 per cent of the bid price within ten calendar days.

in accordance with the terms of the Request for Proposal (RFP) and the reserved bidders be notified to be on standby for negotiations according to the terms of the RFP.?

However, there are speculations that the interest group said be working against the sale of the enterprise to the Chinese firm  has been working through some elements in the Presidency  and the national council on privatisation  to ensure that the letter of offer was not issued within the stipulated timeline as this will technically nullify the offer to the preferred bidder and pave way for the reserved bidder. 

As part of the plot to scuttle the transaction under various guises,   the elements working in favour of the reserved  bidder were said to had making overtures to  the financiers of the New Generation urging them to withdraw their backing and save themselves as much as $1.5 billion. The group was also alleged to be considering pulling the strings

To oust the Director General, Bureau of Public Enterprises, Dr Christopher Anyanwu if that will enhance the achievement of their goal.
In a swift reaction, a member of the National Council on Privatisation, Mr Emmanuel Amadi has denied the allegations of possible manipulations. Amadi in a chat with newsmen said the Council was not under any pressure to scuttle the NITEL/MTel sale and cannot be subjected to any manipulation by the so called interest groups.  According to him,   the letter of offer would be issued as soon as the NCP meets on Friday this week.

?How can all of us in the NCP collaborate to do such a thing? It does not make economic sense that someone is offering $2.5 billion and you give it to another person offering $956 million, it does not make economic sense. What they are saying is far from the truth,? Amadi said.

Amadi however explained that it is only when the preferred bidder fails to pay that the reserved bidder will be called upon to take its place. He said that the NCP meeting scheduled for last week Monday was cancelled because of the busy schedule of the Acting President who chairs the Council in the absence of a Vice President under the current dispensation."

Samstone4
Alakoso....

[samstone4]

@ NNs, Shak,

More on Longe's re-instatement by Supreme court.
Also confirms that the government compensated 1st Bank for the lost IIL deposit. It was pon this compensation that I base my evaluation of the likely value of Nitel. What is the number os shares outstanding in Nitel? I think the compensation was worth about 5 - 11% of Nitel. The compensation was after international arbritation:

"Aftermath Of FirstBank/Bernard Longe Ruling:Experts Expect Peaceful Resolution Of Entitlements
Stories By Kingsley Ighomwenghian ,Finance Editor


More reactions continued to greet last weekend?s ruling by the Supreme Court that the 2001 sack of Bernard Longe, group managing director of First Bank of Nigeria by the board over the failed bid by Chief Bode Akindele-led International Investors (London) Limited to acquire 51 per cent stake in troubled Nigerian Telecommunications Limited (NITEL).

According to a report by BGL Plc on Monday, ?despite the ruling nullifying Longe?s dismissal as the CEO, ?we do not expect a leadership crisis in the bank. We believe that there will be a peaceful resolution between Dr. Longe and the board of First Bank to avert any crisis of confidence that may arise from the implementation of the ruling.?

This position, the report added, is further strengthened by the comments of Longe?s lead counsel Professor Adesanye, who was quoted by the media at the weekend as saying that: ?for his (Longe?s) entitlements, we shall take this up. We are not out for trouble.?

According to the report, despite the fact that the bank may have to make some payments as entitlements (backlog of salaries and allowance over the past eight years) to Longe as directed by the apex court, such may not ?be significant enough to affect

First Bank?s profit negatively.?

As such, they said, this will have no expected negative impact on the bank?s stock price.

Earlier at the weekend, several stakeholders, among them shareholders, expressed mixed reactions over the last Friday decision, which upturned the decisions of the two lower courts in favour of the bank chief.

The reactions came even as the management of the bank said on Friday evening that they are still studying the judgment internally.

In a statement by Ms. Celine Loader, the bank?s spokesperson, noted that ?as law abiding corporate citizens, we respect the Supreme Court and its ruling. We are reviewing the judgment internally and discussing the implications for the bank.?

AS Gbadebo Olatokunboh, a shareholder activist told ***Daily Independent*** in a telephone chat that besides studying the judgment and possibly working out the implications for its operations, the board of First Bank would have to pay Longe?s entitlement. It may be difficult, he regretted, to reinstate him owing to age and other factors, which means he would have retired before now, if he had not been sacked, adding after all, that Longe?s successor- Moyo Ajekigbe has since retired.

Ajekigbe?s successor at First Bank is the present Governor of the Central Bank of Nigeria (CBN), who handed over to the incumbent chief executive of the bank- Stephen Olabisi Onasanya on June 5, 2009, after his nomination by President Umar Yar?Adua received the nod of the National Assembly, a day earlier.

Adeleke Adebayo, another shareholder of the bank and Secretary of the Independent Shareholders Association of Nigeria (ISAN), described the judgment as a bombshell and a shock from which many may not recover very soon.

He told our correspondent in a telephone chat that ?all of us are now swearing to uphold the rule of law and the civility of the democratic process. The board of First Bank has no choice but to reinstate him.?

Adeleke however agreed that the decision is bound to cause a lot of turmoil within the bank and the industry, while upsetting the applecart, adding that ?there is going to be an earthquake in First Bank. If he resumes today, there would be issues of age, among several others.?

He however sees the judgment as a very good platform for Longe to negotiate his exit peacefully, having cleared his name.

?Longe cannot continue to deal with the same cabal that edged him out of First Bank. In the first place they are still very much in place and it would not be wise to continue to confront them,? Adelele stressed.

Four other justices of the Supreme Court concurred with the lead judgment by Justice Oguntade, in his 28-page judgment read by Justice Ibironke that the June 13, 2020 sack of Longe, after an initial suspension, by the bank was illegal, and violated provisions of Section 266 (1) and (2) of the Companies and Allied Matters Act, (CAMA).

The sack, the court held, ?did not follow due process of the law and therefore cannot stand?.

The court also upheld the ruling of the Appeal Court in an earlier ruling and pronounced that the sacked bank chief is still deemed as the CEO of the bank in spite of the supposed dismissal, based on the premise that the sack ran foul of due process as contained in the?Companies and Allied Matters Act (CAMA) on removing a company CEO.


Root Of Problem

The bid by IILL to acquire the Federal Government?s 51 per cent equity stake in the weather beaten telecommunications giant went awry in 2002, after highflying First Bank granted a credit facility worth $131.7 million to IILL stake in NITEL.

However, the failure of IILL to secure the remaining $1.185 billion within the stipulated 90 day deadline implied the complete forfeiture of the initial deposit which, in any case was classified as non-refundable. The board of the bank subsequently ruled that the loan was granted without the necessary requisite approval and Dr. Longe had acted beyond the single obligor limit and subsequently dismissed him from office, this was followed by a once and for all write-off of the loan in its 2002 financial year ended March 31.

The board however continued with attempts to recover the $131.7 million from the Nigerian government even after the write-off, a move that paid off somehow, when in 2008 the Bureau for Public Enterprises (BPE) issued about 4.3 billion ordinary shares of the state telecoms giant to First Bank in lieu of the $131.7 million.
 

Samstone4
Alakoso...where is the mailman? My postings catching up with him.

[samstone4]

@ NNs,

Hope this story not true.
If the sale fails let it be due to inability of newGen and Omen to pay and not because some of those after a cheap buy scuttle it!!
What the comrade mean by Nitel is not ripe for sale?

?FG may suspend NITEL sale?? Bolanle is BPE?s acting head
Tuesday, 09 March 2010 21:48
Strong indications emerged yesterday that the Federal Government may suspend the sale of Nigerian Telecommunication Limited, (NITEL) to the New Generation Consortium.

National Council on Privatisation (NCP) is meeting later in the week to make this position known, a source said. This is coming as Acting President Goodluck Jonathan asked the Director General of Bureau of Public Enterprises Christopher Anyanwu to proceed on an indefinite suspension.

New Generation Consortium was declared winner of the bid by the NCP after bidding $2.5 billion for 75 percent stake in Abuja on February 16. The reserve bidder is Omen International Consortium which offered $956.9 million.

Sources said the Federal Government has since discovered flaws and that the Bureau of Public Enterprises failed in its duty to carry out a satisfactory due diligence on the preferred bidders-the New Generation Consortium. The source said the government is studying the recommendations of the inter-ministerial technical committee that NITEL be repositioned for two years before selling it.

The source said the National Council on Privatisation (NCP), chaired by the Acting President Goodluck Jonathan, is aggrieved over the controversy that rocked the sale of NITEL to the consortium.

Some of the partners of the New Generation Consortium had come out to say they were not part of the deal. But the BPE said there was no cause for alarm.

Contrary to the reports that the acting president?s tight schedule was responsible for the delay in  sealing the transaction, sources said acting President Jonathan has lost confidence in the BPE boss.

The letter of offer is yet to be received by New Generation Consortium, three weeks after the financial bid opening, whereas the Privatisation Act stipulates seven working days for the issuance of offer letter to preferred bidders.

 According to the guidelines, the New Generation Consortium is expected to pay 30 percent of the bid price within 10 days of the NCP approval and subsequently pay the rest of the 70 percent.

Meanwhile, the Federal Government has asked the most senior director in BPE Ms Bolanle Onagorua to act as the head of the agency, BPE?s spokesman Chigbo Anichebe confirmed to Daily Trust yesterday. The new head, who is a lawyer by training, is the most senior director in charge of the electric power sector of the agency. But the spokesman could not confirm the reason why his boss was relieved of his duty. He however said: ?I am also in the dark. I don?t know the reason why he was suspended. I will be speculating if I say it is in connection with NITEL sale.?

Asked whether his suspension will affect NITEL sale to the new consortium, he simply said: ?It may not affect it.?

Meanwhile, President Senior Staff Association of Communications, Transport and Corporation (SSACTAC) NITEL branch, Comrade E.Y. Kazzah had told Daily Trust that NITEL is not ripe for sale.

Dr. Christopher Anyawu, who until now was a little known law teacher in the University of Nigeria Nsukka, was appointed by President Umaru Musa Yar?adua on the March 10, 2009 to head the nation?s privatisation agency.

Mr. Anyawu has had a running battle with the members of the National Assembly over what they described as his inability to run the BPE.  The House of Representatives Committee on Privation and Commercialization had accused the BPE boss of fraud running to N12.9bn in the sale of Sky Power Aviation Handling Company Limited (SAHCOL).  Mr. Anyawu denied any wrong doing.

Samstone4
Alakoso...
 

[samstone4]

@ NNs,

"Published 3/10/2010 3:07:00 AM

Why FG suspended BPE boss ? Investigation
Everest Amaefule, Abuja


The Federal Government suspended the Director- General of the Bureau of Public Enterprises, Dr. Christopher Anyanwu, based on a petition written by the Chairman of the Technical Committee of the National Council on Privatisation, Mr. Mohammed Hayatudeen.

Investigations by our correspondent showed that Hayatudeen had accused Anyanwu of insubordination to the technical committee, which oversees the actions of BPE on behalf of the NCP.

It was learnt that Anyanwu had a penchant for bypassing the reporting line to get approval for memos originating from the BPE.

Apart from bypassing the technical committee most of the time, our correspondent learnt that he once bypassed NCP, chaired by Goodluck Jonathan as Vice-President, to get an approval from President Umaru Yar?Adua.

Investigations also showed that aides to Jonathan, especially his Economic Adviser, Mr. Sam Worlu; and Principal Secretary, Chief Mike Oghaidome, had not been happy with the way Anyanwu preferred to deal directly with their boss instead of through them.

The aides, it was learnt, had been angling for Anyanwu?s removal before the petition written by Hayatudeen, which was eventually referred to them before it was sent to the Secretary to the Government of the Federation, Alhaji Yayale Ahmed.

While on suspension, Anyanwu is expected to answer queries raised by the SGF?s office. Apart from questions bordering on insubordination, Anyanwu is also expected to explain alleged infraction of due process in the transaction leading to the announcement of New Generation Telecommunications as the preferred bidder in the privatisation of the Nigerian Telecommunications Limited.

Samstone4
Alakoso....

[husu]

@alakaso,
 lets pipe low on nitel for the mean time to attract some run away members. what is happening generally in the stock market???

[samstone4]

@alakaso,
 lets pipe low on nitel for the mean time to attract some run away members. what is happening generally in the stock market???

@ Husu,

I'm waxing lyrical about Nitel only because it is the most newsworthy item at the moment.

The market, as we all know, bottomed-out a few months ago and is gradually recovering. I don't think we will see the peak value for another 3 years or so but it is an opportunity to amass very good stocks now at low prices. Alas, most of us have very little capital or trust to do so at this time.

I am collecting more Transcorp now to average down. My average is almost down to 2N, my immediate target. Will hold very long term for good dividends in the future. This will happen unless transcorp collapses completely which is very doubtful.

Some long money should also go to some of the sounder banks e.g. Skye, Diamond etc. Guinness and Nigeria Breweries are good stocks at current prices as they don't seem to have any need for fresh funds. NB declared last year that they will pay all profits out as dividends!!

The petroleum sector is another area to look at as it seems that the deregulation  momentum is now inevitable. Oando makes a lot of good noises and seems to be very go-getting but I don't know if I can trust the leadership a la Cadbury.

CCNN has done very well for months now and seems to be going places. The core investor and the provision of more generating power may be the reason for this so might continue to flourish. Although Wapco declared dividend, last I heard they were going to take some fresh loan so tread carefully here.

Avoid all illiquid stocks that may still be overvalued because the holders cannot offload.

Hope of some use.

Samstone4
Alakoso...always ready to diversify the news.

[husu]

@alakaso,
 lets pipe low on nitel for the mean time to attract some run away members. what is happening generally in the stock market???

@ Husu,

I'm waxing lyrical about Nitel only because it is the most newsworthy item at the moment.

The market, as we all know, bottomed-out a few months ago and is gradually recovering. I don't think we will see the peak value for another 3 years or so but it is an opportunity to amass very good stocks now at low prices. Alas, most of us have very little capital or trust to do so at this time.

I am collecting more Transcorp now to average down. My average is almost down to 2N, my immediate target. Will hold very long term for good dividends in the future. This will happen unless transcorp collapses completely which is very doubtful.

Some long money should also go to some of the sounder banks e.g. Skye, Diamond etc. Guinness and Nigeria Breweries are good stocks at current prices as they don't seem to have any need for fresh funds. NB declared last year that they will pay all profits out as dividends!!

The petroleum sector is another area to look at as it seems that the deregulation  momentum is now inevitable. Oando makes a lot of good noises and seems to be very go-getting but I don't know if I can trust the leadership a la Cadbury.

CCNN has done very well for months now and seems to be going places. The core investor and the provision of more generating power may be the reason for this so might continue to flourish. Although Wapco declared dividend, last I heard they were going to take some fresh loan so tread carefully here.

Avoid all illiquid stocks that may still be overvalued because the holders cannot offload.

Hope of some use.

Samstone4
Alakoso...always ready to diversify the news.

@ samstone,
nice one, never knew you had all these knowledge.Just asking for asking sake cause i may not be ready to start accumulating soonest,just watching the ones i accumulated during the boom. You know they say long termers are the best investors!!!! _{though i am a converted long termer}

[samstone4]

@alakaso,
 lets pipe low on nitel for the mean time to attract some run away members. what is happening generally in the stock market???

@ Husu,

I'm waxing lyrical about Nitel only because it is the most newsworthy item at the moment.

The market, as we all know, bottomed-out a few months ago and is gradually recovering. I don't think we will see the peak value for another 3 years or so but it is an opportunity to amass very good stocks now at low prices. Alas, most of us have very little capital or trust to do so at this time.

I am collecting more Transcorp now to average down. My average is almost down to 2N, my immediate target. Will hold very long term for good dividends in the future. This will happen unless transcorp collapses completely which is very doubtful.

Some long money should also go to some of the sounder banks e.g. Skye, Diamond etc. Guinness and Nigeria Breweries are good stocks at current prices as they don't seem to have any need for fresh funds. NB declared last year that they will pay all profits out as dividends!!

The petroleum sector is another area to look at as it seems that the deregulation  momentum is now inevitable. Oando makes a lot of good noises and seems to be very go-getting but I don't know if I can trust the leadership a la Cadbury.

CCNN has done very well for months now and seems to be going places. The core investor and the provision of more generating power may be the reason for this so might continue to flourish. Although Wapco declared dividend, last I heard they were going to take some fresh loan so tread carefully here.

Avoid all illiquid stocks that may still be overvalued because the holders cannot offload.

Hope of some use.

Samstone4
Alakoso...always ready to diversify the news.

@ samstone,
nice one, never knew you had all these knowledge.Just asking for asking sake cause i may not be ready to start accumulating soonest,just watching the ones i accumulated during the boom. You know they say long termers are the best investors!!!! _{though i am a converted long termer}

@ H,
Flattery will get you eveywhere.
As a converted looong termer what you can do is ditch the least fundamental of your stocks and move into the best value ones.

Samstones4
Alakoso....

[shakabula]

@ NNs, Shak,

More on Longe's re-instatement by Supreme court.
Also confirms that the government compensated 1st Bank for the lost IIL deposit. It was pon this compensation that I base my evaluation of the likely value of Nitel. What is the number os shares outstanding in Nitel? I think the compensation was worth about 5 - 11% of Nitel. The compensation was after international arbritation:

"Aftermath Of FirstBank/Bernard Longe Ruling:Experts Expect Peaceful Resolution Of Entitlements
Stories By Kingsley Ighomwenghian ,Finance Editor



Root Of Problem

The bid by IILL to acquire the Federal Government?s 51 per cent equity stake in the weather beaten telecommunications giant went awry in 2002, after highflying First Bank granted a credit facility worth $131.7 million to IILL stake in NITEL.

However, the failure of IILL to secure the remaining $1.185 billion within the stipulated 90 day deadline implied the complete forfeiture of the initial deposit which, in any case was classified as non-refundable. The board of the bank subsequently ruled that the loan was granted without the necessary requisite approval and Dr. Longe had acted beyond the single obligor limit and subsequently dismissed him from office, this was followed by a once and for all write-off of the loan in its 2002 financial year ended March 31.

The board however continued with attempts to recover the $131.7 million from the Nigerian government even after the write-off, a move that paid off somehow, when in 2008 the Bureau for Public Enterprises (BPE) issued about 4.3 billion ordinary shares of the state telecoms giant to First Bank in lieu of the $131.7 million.
 

Samstone4
Alakoso...where is the mailman? My postings catching up with him.

CMDR,

Can you specify which International Arbitration awarded FBN the NITEL shares?  I can't recollect FBN winning this case in an international tribunal, so please refresh my memory. 

In my opinion, FBN deserved ZERO compensation for the loan they gave IIL.  They knew the terms of the contract which they breached by not making final payment.  I think it'll be misleading to use the "generosity" of the OBJ govt in determining a value for NITEL

[shakabula]

@alakaso,
 lets pipe low on nitel for the mean time to attract some run away members. what is happening generally in the stock market???

@ Husu,

I'm waxing lyrical about Nitel only because it is the most newsworthy item at the moment.

The market, as we all know, bottomed-out a few months ago and is gradually recovering. I don't think we will see the peak value for another 3 years or so but it is an opportunity to amass very good stocks now at low prices. Alas, most of us have very little capital or trust to do so at this time.

I am collecting more Transcorp now to average down. My average is almost down to 2N, my immediate target. Will hold very long term for good dividends in the future. This will happen unless transcorp collapses completely which is very doubtful.

Some long money should also go to some of the sounder banks e.g. Skye, Diamond etc. Guinness and Nigeria Breweries are good stocks at current prices as they don't seem to have any need for fresh funds. NB declared last year that they will pay all profits out as dividends!!

The petroleum sector is another area to look at as it seems that the deregulation  momentum is now inevitable. Oando makes a lot of good noises and seems to be very go-getting but I don't know if I can trust the leadership a la Cadbury.

CCNN has done very well for months now and seems to be going places. The core investor and the provision of more generating power may be the reason for this so might continue to flourish. Although Wapco declared dividend, last I heard they were going to take some fresh loan so tread carefully here.

Avoid all illiquid stocks that may still be overvalued because the holders cannot offload.

Hope of some use.

Samstone4
Alakoso...always ready to diversify the news.

CMDR, please, I'm begging you, leave TC alone....don't you have enough already?    CMDR, I hope you know that Long Term does not mean 500 years  

WAPCO declared 10kobo dividend...not enough to buy guguru and epa from my favorite roadside seller

[gmoni]

@alakaso,
 lets pipe low on nitel for the mean time to attract some run away members. what is happening generally in the stock market???

@ Husu,

I'm waxing lyrical about Nitel only because it is the most newsworthy item at the moment.

The market, as we all know, bottomed-out a few months ago and is gradually recovering. I don't think we will see the peak value for another 3 years or so but it is an opportunity to amass very good stocks now at low prices. Alas, most of us have very little capital or trust to do so at this time.

I am collecting more Transcorp now to average down. My average is almost down to 2N, my immediate target. Will hold very long term for good dividends in the future. This will happen unless transcorp collapses completely which is very doubtful.

Some long money should also go to some of the sounder banks e.g. Skye, Diamond etc. Guinness and Nigeria Breweries are good stocks at current prices as they don't seem to have any need for fresh funds. NB declared last year that they will pay all profits out as dividends!!

The petroleum sector is another area to look at as it seems that the deregulation  momentum is now inevitable. Oando makes a lot of good noises and seems to be very go-getting but I don't know if I can trust the leadership a la Cadbury.

CCNN has done very well for months now and seems to be going places. The core investor and the provision of more generating power may be the reason for this so might continue to flourish. Although Wapco declared dividend, last I heard they were going to take some fresh loan so tread carefully here.

Avoid all illiquid stocks that may still be overvalued because the holders cannot offload.

Hope of some use.

Samstone4
Alakoso...always ready to diversify the news.

Cmdr,
Thanks for that analysis. Most of the banks you mentioned I already have just averaging down at this time after the smacking I took in all of them. I guess there are still some uncertainties since no one knows for sure which ones are to be sold/merged. But the bang for the buck are also in the other ones like NB, Guinness, CCNN.

[shakabula]

@ NNs,

"Published 3/10/2010 3:07:00 AM

Why FG suspended BPE boss ? Investigation
Everest Amaefule, Abuja


The Federal Government suspended the Director- General of the Bureau of Public Enterprises, Dr. Christopher Anyanwu, based on a petition written by the Chairman of the Technical Committee of the National Council on Privatisation, Mr. Mohammed Hayatudeen.

Investigations by our correspondent showed that Hayatudeen had accused Anyanwu of insubordination to the technical committee, which oversees the actions of BPE on behalf of the NCP.

It was learnt that Anyanwu had a penchant for bypassing the reporting line to get approval for memos originating from the BPE.

Apart from bypassing the technical committee most of the time, our correspondent learnt that he once bypassed NCP, chaired by Goodluck Jonathan as Vice-President, to get an approval from President Umaru Yar?Adua.

Investigations also showed that aides to Jonathan, especially his Economic Adviser, Mr. Sam Worlu; and Principal Secretary, Chief Mike Oghaidome, had not been happy with the way Anyanwu preferred to deal directly with their boss instead of through them.

The aides, it was learnt, had been angling for Anyanwu?s removal before the petition written by Hayatudeen, which was eventually referred to them before it was sent to the Secretary to the Government of the Federation, Alhaji Yayale Ahmed.

While on suspension, Anyanwu is expected to answer queries raised by the SGF?s office. Apart from questions bordering on insubordination, Anyanwu is also expected to explain alleged infraction of due process in the transaction leading to the announcement of New Generation Telecommunications as the preferred bidder in the privatisation of the Nigerian Telecommunications Limited.

Samstone4
Alakoso....

Why BPE director general was suspended

[shakabula]

Asset Management Bill Set to Become Law

[samstone4]

@ Shak.

You know OBJ was not in power in 2008 when 1st Bank money returners were compensated. As to the international arbritrators, I don't have any inside knowledge of this just what I read in the papers.
With TC, I am not looking for 500 years although I'll still be around and barely be a teenagers in your earth years. Now that they don't have to spend money on Nitel, more like 3 - 5 years and may start paying significant dividends before then.
This is my calculation and not based on any iron clad inside information.

Baring another Yaradua, after 2011 election it should be achieved. The political risk is the major hurdle TC has always faced. There is also concern about the quality of it's management and their business model now that Nitel is gone - in some quarters. But not particularly worried about these if the politics is not hostile. However, I appreciate your concern and will pause when my average cost is 2N.

@ GovernmentMoni,

Meristem analysis estimates a very high upside to Fidelity at current price. I don't think fidelity was very friendly with Ololo hence the price was very depressed long before the full NSE Sir Alex Ferguson and his Russkies.
Bon chance, as Marie in Paris said to me while being extremely difficult.

Samstone4
Alakoso.. ou est le Rogue trader, mon ami JK - hope not taking advantage of my prolonged absence to get close to Marie?

[husu]

@alakaso,
 lets pipe low on nitel for the mean time to attract some run away members. what is happening generally in the stock market???

@ Husu,

I'm waxing lyrical about Nitel only because it is the most newsworthy item at the moment.

The market, as we all know, bottomed-out a few months ago and is gradually recovering. I don't think we will see the peak value for another 3 years or so but it is an opportunity to amass very good stocks now at low prices. Alas, most of us have very little capital or trust to do so at this time.

I am collecting more Transcorp now to average down. My average is almost down to 2N, my immediate target. Will hold very long term for good dividends in the future. This will happen unless transcorp collapses completely which is very doubtful.

Some long money should also go to some of the sounder banks e.g. Skye, Diamond etc. Guinness and Nigeria Breweries are good stocks at current prices as they don't seem to have any need for fresh funds. NB declared last year that they will pay all profits out as dividends!!

The petroleum sector is another area to look at as it seems that the deregulation  momentum is now inevitable. Oando makes a lot of good noises and seems to be very go-getting but I don't know if I can trust the leadership a la Cadbury.

CCNN has done very well for months now and seems to be going places. The core investor and the provision of more generating power may be the reason for this so might continue to flourish. Although Wapco declared dividend, last I heard they were going to take some fresh loan so tread carefully here.

Avoid all illiquid stocks that may still be overvalued because the holders cannot offload.

Hope of some use.

Samstone4
Alakoso...always ready to diversify the news.

CMDR, please, I'm begging you, leave TC alone....don't you have enough already?    CMDR, I hope you know that Long Term does not mean 500 years  

WAPCO declared 10kobo dividend...not enough to buy guguru and epa from my favorite roadside seller

@shak,
500 years is too much for Nitel to recover na,i believe Nitel will gain its ground in 50-70 years time!.Remember waren buffet time limit is forever

[jawtheoutlaw]

@CMDR,

I remain loyal. Your unshaken believe in TC is giving me second thots.  Pls how are TC's hotels doing?  Have they started construction on the one they made so much noise about in PH? What is generating cash for TC? As per TC and Nitel, my pessimistic calculations are telling me net cash flow to TC will be zero. Does TC have any other business?  I may just decide to contest d TC chairmanship with you, but I do no believe in throwing good money after bad. While waiting for TC to climb from .50k to N4... I may prefer to average down on NASCON that I see their salt on my table every day.

[jawtheoutlaw]

@ Cmdr
 Stil loyal sir.
Please is TC heavily dependent on Nitel?
I believe so much in time value of money and opportunity cost. What is the opportunity cos of waiting 'long term' for one company to get their acts together when others are moving up.

[samstone4]

@Bandido,

I agree with your argument for opportunity cost.
If you have a sure banker for your money go for it!
My initial investment in Transcorp would have been better left in the likes of Guinness etc that I sold to buy into TC but what was the guarantee things would have turned out as they did?
TC is keeping a sensible very low profile now. The hotel is doing very very well. Not likely the PH hilton will go ahead as was mainly dependent on the former GMD. There is plan for a smaller hilton on Lagos Mainland. There are other things too. Enough for me to keep averaging down. IF my broker executed my order today, my average cost will be 2N. Buying for dividends mainly not for capital appreciation of TC but sure that will clome too.

Samstone4
Alakoso..never to resign as chairman tc

[shakabula]

UPDATE 1-Nigeria sets up panel to probe Nitel sale | News by Country | Reuters

[samstone4]

UPDATE 1-Nigeria sets up panel to probe Nitel sale | News by Country | Reuters

@ Shak,

Always copy and paste:

"UPDATE 1-Nigeria sets up panel to probe Nitel sale
Fri Mar 12, 2010 4:39pm GMT

* Committee also includes finance minister

* Panel has 7 days to submit its report

By Camillus Eboh

ABUJA, March 12 (Reuters) - Nigeria's Acting President Goodluck Jonathan on Friday set up a panel led by the justice minister to probe the prospective buyers of former state telecoms firm Nitel, whose sale has been dogged by controversy.

"The National Council on Privatisation (NCP) has set up a seven-member ad-hoc committee to undertake further due diligence on the prospective investors that bid for the sale of (Nitel) and its mobile arm, M-tel," the NCP said in a statement.

"The committee has seven days to submit its report to the NCP," the agency said, adding the committee included Finance Minister Mansur Muhtar and other top government officials.

The sale of Nitel became bogged down in confusion last month over the financial backers for a $2.5 billion preferred bid approved by the privatisation body.

The preferred bidder announced on Feb. 16 was a consortium including Unicom (0762.HK), China's second biggest carrier, little known Dubai company Minerva and a small local carrier.

Doubts arose when Unicom initially denied any involvement, but the Chinese firm later acknowledged its European unit had shown interest in joining the group bidding for Nitel although it had never entered formal negotiations.

Uncertainty over the bid also arose because of the mysterious identity of the group in Dubai which the consortium said would provide much of the financing for a bid that was five times higher than many analysts believed Nitel was worth.

Jonathan on Monday suspended the head of the Bureau of Public Enterprises (BPE), the body responsible for overseeing the sale. [ID:nLDE6272EO]

The NCP -- the BPE's governing body of which Jonathan is the chairman -- said two weeks ago it had cleared up confusion over the $2.5 billion bid, allowing it to go for final approval.

The NCP said the bid had been examined by its technical committee and it was satisfied due process had been followed to the highest international standards.

Nigeria has been trying to sell Nitel for almost a decade and the controversy over the latest effort to do so is embarrassing for sub-Saharan Africa's second biggest economy. (For more Reuters Africa coverage and to have your say on the top issues, visit: af.reuters.com/ ) (Writing by Nick Tattersall; Editing by Tume Ahemba)

? Thomson Reuters 2010. "

@ NNs,

Good idea, provided they give the go ahead. It is prudent to ensure they are capable of paying before the NCP gives the go-ahead. To forestall a national disgrace. My information is that they can pay.
Any of those complaining of lack of transparency should be allowed to match $2.5 Billion.

$2.5 Billion has a very nice ring to it. Good for the vendors, good for Nitel workers and pensioners, good for Nigerians!

Samstone4
Alakoso...

[shakabula]

UPDATE 1-Nigeria sets up panel to probe Nitel sale | News by Country | Reuters

@ Shak,

@ NNs,

Good idea, provided they give the go ahead. It is prudent to ensure they are capable of paying before the NCP gives the go-ahead. To forestall a national disgrace. My information is that they can pay.
Any of those complaining of lack of transparency should be allowed to match $2.5 Billion.

$2.5 Billion has a very nice ring to it. Good for the vendors, good for Nitel workers and pensioners, good for Nigerians!

Samstone4
Alakoso...

CMDR, I think you meant to say:

$2.5Billion has a very nice ring to it:  Good for the Alakoso, good for the Aare, good for the C-in-C, good for the Generalissimo of Prisons and Police, good for the Governor General of Southern Nigeria and Cameroun, good for the Protector of Bakasi!

Alakoso, to think you have used all the aforementioned titles (and more) on this forum....

Shakabula  
ADC to the Alakoso...but looking for a bigger title

[samstone4]

@ Shak,

Don't follow me too closely - like my chemistry teacher used to say.
You remember all those titles!
What greater honour can they be than to be the ADC to Alakoso?
It means you're to the Alakoso almost like Turai is to Yar'adua - always by his side. Don't you know that all ADCs in Nigeria since independence became multi millionaires?
It is best to give Nitel to those who want to pay $2.5 Billion than those who will pay $100,000 for Sat-3!

Samstone4
Alakoso....Supreme vendor of Nitel

[osazeet]

Nigeria Rally Starting as Cheapest Stocks Climb 10% (Update2)



 -- Nigeria, last year?s worst- performing stock market, is rebounding as the world?s lowest valuations and projections for record bank profits lure Citigroup Inc., Exotix Ltd. and Insparo Asset Management.
The nation?s benchmark All-Share Index has rallied 10 percent in 2010 after tumbling 34 percent last year, the biggest drop among benchmark indexes in the 70 largest equity markets. The gauge is valued at 4.6 times earnings estimates as analysts predict profits at First Bank of Nigeria Plc, Guaranty Trust Bank Plc and Stanbic IBTC Bank Plc will climb an average 43 percent, according to data compiled by Bloomberg.
Investors are returning to Africa?s biggest oil producer after central bank governor Lamido Sanusi pledged to rid banks of bad loans, oil prices doubled and crude output climbed on an amnesty agreement with rebels in the Niger Delta. Shares are rallying even as President Umaru Yar?Adua?s two-month absence causes a power vacuum in the continent?s most populous nation.
?The Nigerian market is picking up,? said Jamie Allsopp, who helps oversee about $165 million at Insparo. The London- based firm?s Africa and Middle East fund returned 31 percent in 2009, compared with a 7 percent gain in the MSCI Frontier Markets Index. ?Banks are offering a lot of value. The equity is still cheap.?

Oil Rally

The All-Share Index climbed 0.4 percent to 23,061.41 at the close in Lagos, according to the Nigerian Stock Exchange?s Web site.
Nigeria?s economy is set to grow 4.8 percent this year after expanding 4.3 percent in 2009, according to the World Bank. That compares with the Washington-based lender?s forecast for 2.7 percent growth in the global economy. Oil prices have jumped to $74 a barrel from about $35 in December 2008.
The growth rate helps make Nigeria one of the world?s most attractive so-called frontier markets, Andrew Howell, an emerging-market strategist at Citigroup in New York, wrote in Feb. 3 research report.
Nigerian shares are recovering from two years of losses spurred by a collapse in oil prices during the global recession and a banking crisis sparked by bad loans to stock speculators. Toxic assets at banks may have reached as much as $10 billion, according to estimates by New York-based research firm Eurasia Group.
Sanusi, who replaced Chukwuma Soludo as the governor of the Central Bank of Nigeria in June, has fired the chief executive officers of eight lenders and injected at least 620 billion naira ($4.1 billion) into 10 banks.

Heart Ailment

The central bank has pledged to guarantee all interbank loans until the end of 2010 and asked parliament to create an asset-management company that will buy bad debts from banks.
The intervention in the country?s banking industry is ?restoring confidence,? Sanusi said in an interview in the commercial capital, Lagos, last week. ?If banks are stable and making good profit, their stocks will go up.?
Nigeria has the potential to deliver ?very strong? long- term returns, though political uncertainty may deter investors, according to John Lomax, an emerging-markets strategist at HSBC Holdings Plc in London. ?There is still a lack of clarity,? he said in an interview in Johannesburg on Feb. 9.
President Yar?Adua, 58, hasn?t been seen in public since he was flown to Saudi Arabia on Nov. 23 for treatment of a heart ailment. Yar?Adua?s failure to temporarily hand authority to Vice President Goodluck Jonathan left government initiatives pending, including the implementation of the amnesty for former militants in the Niger Delta.

Earnings Growth

Armed groups said last month they would resume attacks after cutting oil output by more than 25 percent between 2006 and 2009. Militants said Feb. 7 they disabled a trunk oil pipeline operated by The Hague-based Royal Dutch Shell Plc.
While developing-nation equities may face short-term declines, markets remain in a ?secular? rally driven by accelerating economic growth and consumer demand, according to Templeton Asset Management Chairman Mark Mobius.
Nigerian stocks are attractive and banks provide the nation?s ?most interesting? investment opportunities, Mobius, who oversees about $34 billion in Singapore, said in a Jan. 8 interview. ?It?s a good market.?
Investors are paying the equivalent of $4.60 for every dollar Nigerian companies will earn this year, according to Bloomberg data. That compares with $8.40 in Pakistan, $8.50 in Greece and $13.80 in the U.S., Bloomberg data show.
Increased consumer lending will fuel bank earnings, according to Insparo?s Allsopp. About 15 to 20 percent of Nigeria?s 150 million people have bank accounts, he said.

?Clear Value?

First Bank of Nigeria Plc, the country?s biggest lender by market value, may earn 2.2 naira a share in the fiscal year ended March 2011, up from 1.87 naira this year, according to the average of seven analysts? estimates compiled by Bloomberg.
The Lagos-based company trades at 6.7 times profit estimates, compared with 12 times for the MSCI Emerging Markets Financials Index. The stock, up 5.3 percent this year, may gain 38 percent in the next 12 months, according to the average of projections on Bloomberg.
Guaranty Trust Bank Plc, Nigeria?s third-biggest lender, may increase per-share earnings 67 percent this year, according to analysts? estimates. The shares trade for 8.2 times profit projections after climbing 19 percent in 2010.
?The Nigerian banks clearly have value,? London-based strategist Christopher Hartland-Peel of Exotix Ltd. wrote in a report. The shares ?are going to be the most interesting part of our Sub-Saharan Africa universe in 2010.?

--With assistance from Vincent Nwanma in Lagos, Nasreen Seria in Johannesburg and Laura Cochrane in London. Editors: Gavin Serkin, Daniel Hauck.

To contact the reporters on this story: Michael Patterson in London at mpatterson10@bloomberg.net; Janice Kew in Johannesburg at jkew1@bloomberg.net.

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

[samstone4]

Nigeria Rally Starting as Cheapest Stocks Climb 10% (Update2)



 -- Nigeria, last year?s worst- performing stock market, is rebounding as the world?s lowest valuations and projections for record bank profits lure Citigroup Inc., Exotix Ltd. and Insparo Asset Management.
The nation?s benchmark All-Share Index has rallied 10 percent in 2010 after tumbling 34 percent last year, the biggest drop among benchmark indexes in the 70 largest equity markets. The gauge is valued at 4.6 times earnings estimates as analysts predict profits at First Bank of Nigeria Plc, Guaranty Trust Bank Plc and Stanbic IBTC Bank Plc will climb an average 43 percent, according to data compiled by Bloomberg.
Investors are returning to Africa?s biggest oil producer after central bank governor Lamido Sanusi pledged to rid banks of bad loans, oil prices doubled and crude output climbed on an amnesty agreement with rebels in the Niger Delta. Shares are rallying even as President Umaru Yar?Adua?s two-month absence causes a power vacuum in the continent?s most populous nation.
?The Nigerian market is picking up,? said Jamie Allsopp, who helps oversee about $165 million at Insparo. The London- based firm?s Africa and Middle East fund returned 31 percent in 2009, compared with a 7 percent gain in the MSCI Frontier Markets Index. ?Banks are offering a lot of value. The equity is still cheap.?

Oil Rally

The All-Share Index climbed 0.4 percent to 23,061.41 at the close in Lagos, according to the Nigerian Stock Exchange?s Web site.
Nigeria?s economy is set to grow 4.8 percent this year after expanding 4.3 percent in 2009, according to the World Bank. That compares with the Washington-based lender?s forecast for 2.7 percent growth in the global economy. Oil prices have jumped to $74 a barrel from about $35 in December 2008.
The growth rate helps make Nigeria one of the world?s most attractive so-called frontier markets, Andrew Howell, an emerging-market strategist at Citigroup in New York, wrote in Feb. 3 research report.
Nigerian shares are recovering from two years of losses spurred by a collapse in oil prices during the global recession and a banking crisis sparked by bad loans to stock speculators. Toxic assets at banks may have reached as much as $10 billion, according to estimates by New York-based research firm Eurasia Group.
Sanusi, who replaced Chukwuma Soludo as the governor of the Central Bank of Nigeria in June, has fired the chief executive officers of eight lenders and injected at least 620 billion naira ($4.1 billion) into 10 banks.

Heart Ailment

The central bank has pledged to guarantee all interbank loans until the end of 2010 and asked parliament to create an asset-management company that will buy bad debts from banks.
The intervention in the country?s banking industry is ?restoring confidence,? Sanusi said in an interview in the commercial capital, Lagos, last week. ?If banks are stable and making good profit, their stocks will go up.?
Nigeria has the potential to deliver ?very strong? long- term returns, though political uncertainty may deter investors, according to John Lomax, an emerging-markets strategist at HSBC Holdings Plc in London. ?There is still a lack of clarity,? he said in an interview in Johannesburg on Feb. 9.
President Yar?Adua, 58, hasn?t been seen in public since he was flown to Saudi Arabia on Nov. 23 for treatment of a heart ailment. Yar?Adua?s failure to temporarily hand authority to Vice President Goodluck Jonathan left government initiatives pending, including the implementation of the amnesty for former militants in the Niger Delta.

Earnings Growth

Armed groups said last month they would resume attacks after cutting oil output by more than 25 percent between 2006 and 2009. Militants said Feb. 7 they disabled a trunk oil pipeline operated by The Hague-based Royal Dutch Shell Plc.
While developing-nation equities may face short-term declines, markets remain in a ?secular? rally driven by accelerating economic growth and consumer demand, according to Templeton Asset Management Chairman Mark Mobius.
Nigerian stocks are attractive and banks provide the nation?s ?most interesting? investment opportunities, Mobius, who oversees about $34 billion in Singapore, said in a Jan. 8 interview. ?It?s a good market.?
Investors are paying the equivalent of $4.60 for every dollar Nigerian companies will earn this year, according to Bloomberg data. That compares with $8.40 in Pakistan, $8.50 in Greece and $13.80 in the U.S., Bloomberg data show.
Increased consumer lending will fuel bank earnings, according to Insparo?s Allsopp. About 15 to 20 percent of Nigeria?s 150 million people have bank accounts, he said.

?Clear Value?

First Bank of Nigeria Plc, the country?s biggest lender by market value, may earn 2.2 naira a share in the fiscal year ended March 2011, up from 1.87 naira this year, according to the average of seven analysts? estimates compiled by Bloomberg.
The Lagos-based company trades at 6.7 times profit estimates, compared with 12 times for the MSCI Emerging Markets Financials Index. The stock, up 5.3 percent this year, may gain 38 percent in the next 12 months, according to the average of projections on Bloomberg.
Guaranty Trust Bank Plc, Nigeria?s third-biggest lender, may increase per-share earnings 67 percent this year, according to analysts? estimates. The shares trade for 8.2 times profit projections after climbing 19 percent in 2010.
?The Nigerian banks clearly have value,? London-based strategist Christopher Hartland-Peel of Exotix Ltd. wrote in a report. The shares ?are going to be the most interesting part of our Sub-Saharan Africa universe in 2010.?

--With assistance from Vincent Nwanma in Lagos, Nasreen Seria in Johannesburg and Laura Cochrane in London. Editors: Gavin Serkin, Daniel Hauck.

To contact the reporters on this story: Michael Patterson in London at mpatterson10@bloomberg.net; Janice Kew in Johannesburg at jkew1@bloomberg.net.

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

@ Osas, NNs,

Good to hear all these foreign analysts being so positive about NSE. My only concern about the banks are all the bonds they have being issuing and the dilutive effects on the P.E ratios. Wonder if these analyst considered these in their forward ratios.

@ Osas,
What's the latest on Transcorp or have you too abandoned ship?

Samstone4
Alakoso....