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Proshare

August 31, 2007/ a.akinbola@nahco.com

 

 

Existing shareholders and potential investors of the Nigerian Aviation Handling Company PLC (NAHCo), the nation’s foremost ground handling company, now have the opportunity of increasing their stakes in the Company, as the much awaited combined N2, 152,500,000 Public Offer opens on September 10 and closes on September 28. The exercise is aimed at raising adequate capital for the implementation of NAHCo’s three-year Corporate Business Plan.

 

NAHCo is offering 90million Ordinary Shares of 50k each at N17.50 per share through a Public Offer. The Company is simultaneously offering by way of rights 35million Ordinary shares of 50k each at N16.50k per share to existing shareholders as at 18th May, 2007.

 

The gross proceeds from the combined Offer are estimated at N2, 152,500,000. The estimated net proceeds is N2,002,590,465.00, after deducting the costs of the issue (N149, 909, 535.00 or 6.96%) will be used to fund the Company’s business growth and expansion strategy, which includes acquiring new Ground Support Equipments (GSEs), reinforcing the company’s technology platform, construction of new cargo sheds, re-branding, and increasing the working capital to support the expected expansion. About 49.56% of the net proceeds of the offer will be committed to the purchase of equipments which are critical to NAHCo’s operations.

 

At the Completion Board meeting of the Offer held in

Lagos on Thursday, Alhaji Suleiman Yahyah, NAHCo’s Vice Chairman, stated that the Company needs the capital injection in order to further improve on its ability to continue to deliver maximum stakeholder value. Also at the occasion, Dr. Jonathan Long, Chairman of FCMB Capital Markets, one of the joint issuing houses, said the share offer is predicated on the need for NAHCo to continue to deliver quality services to domestic, regional, and international airlines.

 

NAHCo’s market capitalization, which at pre offer stands at N13.125 billion, is expected to increase to N15.312 billion after the offer. The Company’s Management and the Parties to the issue are confident that the share offer will be fully subscribed, given the impressive performance of the Company, as well as the robust trading of its shares on the Stock Exchange. NAHCo stock is the most active aviation stock in the Nigerian capital market.

 

Listed on the Stock Exchange on 28 November, 2006 at N5.50k, NAHCo’s share value remained steadily on the increase, closing at N70.05 in May 2007 before it was technically adjusted for dividend and bonus issue payment, in line with the regulations of the Capital Market. NAHCo investors reaped over 1000% capital gain between November 2006 and June 2007.  The shareholders were also allotted bonus of 3 for 2.

 

This record performance by NAHCo stock has been described by analysts as the capital market’s reaction to the company’s strings of impressive performances, especially its 2006 operating results. The audited operating results of the company for the financial year ended 31 December, 2006, show that Turnover grew from N3.050billion to N3.245billion, while Profit before Tax rose by 21.4% from N457.7million to N555.9million.

 

NAHCo controls over 75% of the ground handling market in

Nigeria, offering ground support services to 27 of the 35 airlines operating in the country. It recently also won the ground handling contracts for Arik Air, Delta Airlines, a new carrier licensed for the US-Nigeria route, and Aero Contractors at MMA Terminal 2.

 

Meanwhile, Mr. Bates Sarki Sule, MD/CEO of NAHCo, has disclosed that the company’s focus is on the provision of improved quality service, significant investment in purchase of brand new ground handling equipment, corporate re-branding, human capital development, and improvement in its automation systems. According to him, NAHCo is re-positioning in order to maximise stakeholder value and surmount the future challenges of competition.

 

Please refer further enquiries to Ademola Akinbola, Head Corporate Planning and Communications. Telephone: 0803 3018 881

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