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Business News of Tuesday, 17 November 2020

Source: thisdaylive.com

TY Holdings to acquire 60% stake in BOC gases

BOC Holdings Plc(BOC UK), which holds 60 per cent equity in BOC Gases Nigeria Plc is to sell its shares to TY Holdings.

In a notification to the Nigerian Stock Exchange (NSE) yesterday, BOC Gases Nigeria said BOC UK had entered into a binding share purchase agreement dated 16 November 2020 with TY Holdings Limited for the purchase by TY Holdings Limited of the entire shareholding BOC UK holds in BOC Nigeria and certain claims owing by BOC Nigeria to BOC UK and certain other members of the Linde Plc Group.

“We understand that the proposed transaction is currently at a preliminary stage and its consummation is subject to the requisite regulatory approvals being obtained from the NSE, the Nigerian Securities and Exchange Commission and the Federal Competition and Consumer Protection Commission in accordance with the share purchase agreement.

“Further details will be communicated to the market upon relevant approvals being obtained from the regulators. Shareholders of BOC Nigeria are advised to exercise caution when dealing in the shares of BOC Nigeria until a further announcement is made,” the company said.

The company manufactures and distributes gases for the industrial and medical sectors in Nigeria including argon, nitrogen carbon dioxide and oxygen. The company also manufactures and distributes welding products and sells a range of medical equipment.

BOC Gases Nigeria paid a dividend of 30 kobo per share for the 2019 financial year and has recorded higher performance for the nine months ended September 30, 2020.

It posted a revenue of N2.164 billion in 2020, up from N2.347 billion recorded in the corresponding period of 2019. Gross profit stood at N1.118 billion, up from N929 million, while profit after tax rose by 48 per cent from N131 million to N194 million.

Meanwhile, the shares of BOC Gases Nigeria led the price gainers, climbing 9.9 per cent in a day that profit taking ruled the equities market. Neimeth International Pharmaceuticals Plc trailed with 8.9 per cent, while Unity Bank Plc and Ardova Plc chalked up 8.8 per cent and 8.1 per cent respective. In all, only 11 stocks appreciated compared to 43 stocks that depreciated.

The stock market opened the week with a bearish trading as investors took profit after an unprecedented record performance that saw the NSE All-Share Index soar by 12.9 per cent.

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