15 enhance capacity of network MIN, leading 10 servke provider, retenlly during a press briefing. appealed for understanding from its cuslomers and olher key Sfokeholdet's as it continues Its netwotlc modernizotion and swop-out exeKise. PagelS
_ Company news. analysis and insight
Cross River, Ulleka Brothers sign N3.5bn Obudu Ranch Resort electrification pact Page 17 Thursday 25 October 2012
BUSINESSDAY: www.businessdayonline.(om
Nokia seeks $1bn from bonds
NONSO NDUMANYA
... targets Nigeria Ghana to claw back lost market to Apple, Samsung
M Obil.
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phone m a k e r No k I a plans to ra1seS980 million (N 1.'Urn) by issuing bonds IhAt can be converted Into shares. seeking. cheap w.y 10 bolster lIS fmgile finances, A'!! It battles to claw bat;k market share lost to Apple and Samsung. Once the world's bisgest: mobiIephonemakct theflMIsh finn has fullcn far behind AppIe'5iPhoneand~s
Galaxyphone in the Iua:Hive smartphone mnricet, and is pinnlf1\: lIS hopes for reaM!f)' 00 newrnotk-ls thallPOIl sale
""'Ina .......... bld toachlevingthls
It would be pladng strong
focus on emerging markcl&
like Nigeria, Ghana. Kenya andSouth Africa who are inc~asing trendlngly to Silvvy and posh phones _ Wilh its CAsh reserves 'alling and Its credit ratings cut 10 iunkoverthepa~ year. analysts have said Nokia need5to show A!Urnaround In the next severnl months If Ills 10 survive. lIS shares fell tm:r 7 percent to around 2 euros In Tuesday ahernoon Ira de lIS Investors worried the eventual conversion of the new bonds Into stoclcwould reduce earnings per share_ Bul analysts said the choice of convertible bonds - which normally pay lower Interest ra les than normal bonds because they offer Invators the chance of malting money when they are converted Into shares - was
a smart one. "II Is a miller cheap way to gel uua financing; said Evil analyst Mikko Ervasli -They need burrers (and) their 20 14 bond also re quires financing.Nokia's net cash relltol.6 billion euros In September from 4.2 bllllon In June. It abo finished the third quarter wilh 3.8 billion euros in Interest-bearing liabilities. with 1.75 billion In bonds and loans malurlng In 2014. Additionally. the com pany owns hair of network eqUipment venture Noklll Slem,.ns Networks. which finished thequanerwith 1.4 billion eUfOS In liabilities. The convertible bonds will be due In 2017 and will pay a coupon between 4.25 percent and 5.00 percent lhe Initial prke for conversian Into ordinary shares Is
cIpectcd 10 be 28-33 per ami above Iheavemge price orNolda shares bet~n the launch and pricing of the offering. Pinning Ilopu On I.Ulnla Nok.ia's fontlnes hinge on lis top-of-the-range tumla 820 Rnd 920 models, which run on Mlcrosoh's newWilldows l>hone 8 software. The phones. which come In vivid colors and have high-resolution cameras, will hil Ihe s tores in Nove:mber_ On Tuesday. the group unveiled the lower price Lumli'l 51 O. which Is an up date of the Lumia 610 but does not use the newest venion of Windows soflware. The 510 hB'!! a larger screen and will be sold for around 5199, uc1udlng laxes lind subsidies. INO i'lnalysts welcomed
Poor performance of real sector, bane of the nation's
the collVf!r1lble bonds plan
as reducing uncertainty around Nokh'" silorHerm debt maturities and bolsterIng lIS capililJ -It also shows that the company Is taking thequesLion mark.!! around lIS credh qu:dity seriously and Is wllIIng to take the ~ep!!i necessary to improve this; they said In a r_arch nOle Nokl!!'s five-year credit default swaps were trading around 2.8 pen:ent Ilghler In earlier trading. meaning lower COSIS of insuring the company agalnsl default The final terms of the convertible bonds. Illciud ~ Ing Ihe conversion price and maximum numbel of shares which may be issued upon conversion. will be announced laler In the day Tradingln the bonware due 10 STan IUOUnd October 26_
multitude of Issues raclnllihe Nigerian economy, Including unemployment . in 5«Urity and poverty. among ~ UJUId be tr.JI;fti to thI! ralillteoithereal aectoc So said Is~c Ad!! AgU)'e, dllunnan. Mllnuhtcl\uen t\5. 5OCiation or Nigeria (MAN) ~ al tIw 45th Annual General Meeting or Ihe anodarkm. with the theme !he ""'1' OUt or the Konomic woes .m""""'nthe real seclor· held recen In l.agos. The rorlunes or t e lIeCtnr whkh
TI
~inlheea.rIy80·s1l'!la
ttStJit ofIacktu:Aer performarta arising from un&iendJy UJVe5l menl poIldes .nd ~of crude oil. hM been worsened by policy InCUlisiSlency. un regulated imponatlonor ~ produced by local indu5lnes, multiple tuatitm and deClIv In Infl1l5Uuctura! facUlti~ to mention a few lhe~tyeMha'!I~
challenging lor the manuf.fitting aectOf due to the harsh lOti unfriendly polices 01 the gD''CfIlment. high Intl!R!!il rate and Inf'Iation. resultinsln)Ulll8 people who would ~ been gainfu1lyI!fn~. I"I!ITI8i.ning
idle, he said. ' Ii has therefore heeome Impefililve 10 dIsal5!l these luues with the 111m of $Il1vi1gins tIw emnomy ~ pm. vIc.Iing tangfhIe solution." Ana/yst.'l are of the view that Ihe largely agrarian II~utde peldenoe Ni&f'rianeconomyin
tIw mid-simes "'M 5U'ppol1ed hy In~t In rnanufxtur Ing by bolh Ihe IlrlVIIle aud
publk: !iCCtln
!he inahillty or (;m'!'m mentto extmct uptimum hen ellts fmm internltional trade ilgreemenl~ further makes the environment unfriendly ror manufKfUrltlg. fesultln~ In smuggling and dumpmK SilJd Kola J.unodu, ~ldent. Manuracturers As.<ocUuJon 01 ~("AN)_In.,...,..,
tlltlOO. Jamodu Mtded thai thb hM resrraitlf!d the 5eCtOf from IIlIalning thl' desired petfor mance\eo.1!I.and~oweddown ~nentlon and
enlpkJyment ~
aC3tion for me nation.
UTe plans export of cassava to countries in West African region SlAKAMOMOH igerhin CISU"a bread kick Sllrted by the nadon's four major bakers. would soon be mavins Inlo Ihe e:.;pon market counesyof lrrCplc. IIccording 10 Paluso Olanlyan.lTTC', Olld t'RCI.idve officer lITCh lookInglle:qx>rtIngJI$CIlS5IIVlIloalcaDedStarloaf to neighbouring African counuies In II bid to support
N
___ d es pite
low leve l acceptance
government'. advocacy of CUAV;J usage as raw materials for !bread and other lood produru despite Its low IeV!':I acceplance in the country': EJ;plllininll why UTC WI, 1I0ing internation.i, when the compllny Is yel to hive a foo t hold in Nigel!lI. FolulO Olanl)'ln, said, ·We, I .. a privlte organisa tion. are Inlcrested In shareholden values which come wilh profilablllty. lIence, ollr
readiness to emb,ace consume" who lie ready to pay the priu.lrrespectJve of where they are as lo ng a~ it contriboles pot.ltJvely to our bottom line. Prfvlte rompa nit'll lie created for pronu: Cassavl-based produc,c,eate valut'S hnhh -wlse and Increase productivity a5 the Inclusion of CIlMan n our lillducel production COsIS; -That h why we a re
craftlnR the S"r1oaf 115 an Intemll!lonal product wilh the hope o f com mencing exporting to o ther Afrlclln counlrles by Ch ristmas, beginning wllh Ihe West Ablun reKion. We wanl 10 make thls }"!lts' Chrlslm.s a cusava-filled Christmas fOJ Mrlam nations. In I bid 10 achieving this. UTC would be spreadlnll the callSava tidings acrollS Africa. As we speak. we have
appointed agillou ror the products In Cotonou .nd Accra_ We .re lust wlitlng to Hlle tune our MoU lind all necessary paper work before WI!! commeoc;e dellvfi)', "saki OIIflJyan. As p.u of the federal gove rnm ent's Agricullurlll T ransformilion Agenda. pernment Inuoouc~ the 40 percenl caua"l noul Ind uslon Into brelld baking project. UTC and I few
other companlcs 1fI.. ~ Food Conceplll pic have achieved 21) peruntlncluslon_ The caSlUIVI bread prol eCI wis slatled wllh Ihlll CompoSite Rour Reselrch work In AfRO which culmina ted In Ihe nrSt production of IOperttnt(ASSiI\.'lIIWhelt Bread wlUch was pt'rse.nled to the Federll Executive Cound1, under thlll ad"'In_ Islrtumn of p resident Shehu Shagarl GCFR in 1S82.