Ardova to Float N60bn Bond Issuance Programme

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Ardova Plc (AP) has proposed to establish a N60 billion bond issuance programme, which would lead to raising of funds that would facilitate the execution of its growth strategy.

In a notification to the Nigerian Stock Exchange (NSE) and general public, Ardova Plc said its board of directors via a resolution dated 25 February 2021 had resolved to recommend the proposed transaction for the approval of the shareholders of the company, subject to obtaining requisite regulatory approvals and relevant contractual approvals.

“The final decision to proceed with the proposed transaction will be subject to market conditions and the specific details of the proposed transaction will be disclosed in the appropriate transaction documents at the relevant time. Potential investors are advised that nothing in this announcement shall constitute an offering of any securities once and if the programme is established,” it said.

The company explained that any decision to participate in and subscribe for bonds under the proposed transaction would be made based on the investor’s review of the information contained in and incorporated by reference into the shelf prospectus and pricing supplement to be published, and after due consultation with its stockbroker, solicitor, accountant, banker or an independent investment adviser.

The Chief Executive Officer, Ardova Plc(AP), Olumide Adeosun, had recently said the company would remain focused on increasing long-term value for their shareholders by investing in higher margin products to improve their earnings-generating capacity and preserve the strength of AP’s balance sheet.

The company has recommended a dividend of N249 million for the year ended December 31, 2020, translating to 19 kobo per share. AP Plc recorded a revenue of N181.7 billion in 2020, up 2.9 per cent from N176.6 billion in 2019. Net finance cost jumped from N270.2 million to N1.1 billion, while profit before tax (PBT) printed at N3.2 billion as against N4.7 billion in 2019, while profit after tax (PAT) stood at N2.1 billion compared with N3.9 billion in 2019.

Adeosun said 2020 presented the most challenging market conditions globally with the energy sector being one of the worst hit by the pandemic.

“The foresight we had in the early activation of our business continuity plan proved essential as we transitioned to remote work with a near zero impediment to workflows. The resilience of our firm shone through as we forged ahead to achieve milestones we set in our strategic roadmap.

SOURCE: THIS DAY

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