DAILY TRUST
Monday; April 25, 2011
29
Business
Alwaleed to'seaIZaio/Saudi deal
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SAU 01 rrince Alwaleed bin Talal at a news conference in KUWait City.
SAUDI Prince Alwaleed .bin Talal, whose firm Kingdom Holding has bid for a quarter stake in Zain Saudi, expecting to complete the deal two months after finishing a due diligence process. : Kuwaiti telco Zain, which has a 25-percent stake in Zain Saudi, has conditionally accepted a $950 million offer from joint bidders Babrain TelecomrilUnications Co (Batelco) and Kingdom Holding. He expects the due diligence process to take as many as six weeks to complete. "We now started... the Zain Saudi (due diligence) which is expected to take between a month to a month and half,' Alwaleed told reporters in Kuwait. "If everything goes well we expect to complete the deal of buying Zain Saudi from Zain Kuwait within 2 more months." Last week, Zain Saudi said its first-quarter net loss narrowed as the telecoms operator offered new services and packages to lure customers but the quarterly loss was still wider than analysts' forecasts. Alwaleed, a prominent investor in Citigroup, said the U.S. bank's one cent dividend was for the short-term, adding that the bank was "on the right track." "No doubt that the路 1 cent dividend is very symbolic and is for short-term ..... the leadership in Citi announced publicly that 2012 will be the year of returning shareholders capital which would happen through two ways, either increase in the dividends or some share buyback;' he told reporters. A company owned by Alwaleed agreed to give back most oEthe land it was allocated for a farming project in southern Egypt, an Egyptian government spokesman said last week. Alwaleed told reporters that his investments in Egypt were safe but did not give more details.
Interbank rates .rise on large cash outflows THE Nigerian interbank lending rates climbed to 10.25 percent on average this week from 9.66 percent last week. on the back oftarge cash outflows to foreign exchange and bond purchases, traders said on Friday. The secured Open Buy Back (OBB) held stable at 9.50 percent, 200 basis points above the central bank's 7.50 percent benchmark rate and 4.5 percentage points higher than the Standing Deposit Facility (SDF) rate. But overnight placement climbed to 10.50 percent from 9.75 percent, while call money rose to 10.75 percent from 9.75 percent last week. Dealers said outflows to foreign exchange and other transactions in the week drained liqUidity in the system
and pushed up the cost of borrowing among banks. Nigeria sold over $600 million at its central bank foreign exchange auctions this week, while a toial ofN70 bilJ[on was sold in 3-year and 5.-yeaf sovereign bonds. "There was 'inflow from personnel costs to government agencies in the week, which helped reduce the impact of outflows on the cost of fund in the market;' one trader said. The market opened with a balance of about N86 billion ($555 million) on Thursday but the market is expected to be short next week because of the impact of major outflows to foreign exchange and other transactions. "We see the market becoming short
next week and-th"cost of borrowing inching upi' bit until the next round of budgetary disbursements;' another dealer said. . The Nigerian market will be closed until Wednesday for the Easter public holiday and governorship and state assembly elections tomorrow. The indicative rates for the Nigeria Interbank Offered Rate (N1BOR) closed higher in tandem with shortterm funds, with the 7-day fund rising to 11.15 percent from 10.91 percent a week earlier. The 30' day fund irjched up to 12.33 percent from 12.12 per cent, the 60-daywasupto 13 percent from 12.91 percent, while the 90-day dropped to 13.45 percent from 13.60 per cent.
Agric firm launches flavou red water From Mohammed Shosanya, lagos ONE of the nation's beverage companies, Fumman Agric. Products Industries Limited, has launched a new product, Vogue flavoured water into the market. The new product came in lemon and peach form. Speaking. at the launch yesterday, the company's Head, Business Development and Strategy, Jeff Mogbolu said the product was introduced in response to the needs of consumers in the country. "The consumer is king and in a bid to continue to satisfy their ever-changing and more sophisticated tastes and expectations, we have developed this product~ Mogbolu said the product is hygienically packaged, free of sugar and consumer-friendly:
Fertilizer firm targets 500,000 metric tons From Mohammed Shosanya, lagos start next year, is completed within five years. He added that, current production would leap from 1100 NOTORE Chemical Industries Limited, an agro-allied and metric tons to 1400 metric tons by end oOune this year. chemical company says it is embarking on a robust expanOn the purpose of the plant tour, he said "it was to introsion programme that would put its total production capac- duce some of our key stakeholders to our-efforts so far in our ity at 500,000 metric tons. . green revolution campaign. The whole essence oEthe tour is . The Managing Director and Chief Executive Officer for our key stakeholders to have first hand information on of the company, Mr. Jite Okoloko who disclosed this in a the role we are playing in Nigeria's agricultural development." chat with newsmen at the weekend, said the development The chief executive officer of Notore, who said Nigeria's is aimed at m eeting 50 percent of the country's fertilizer self-sufficiency in food production is unattainable without requirement. fertilizer, tasked the key stakeholders to support the comHe stated this recently while speaking to journalists pany in meeting farmers' requirement in terms of quality during the tour of the plant by some key stakeholders, and volume offertilizer. including the Managing Director and Chief Executive "We have spent the entire $400 million fund syndicated officer of Bank of Industry (BOI), Ms Evelyn Oputu; the by local banks in the rehabilitation exercise. We will soon managing director and chief executive officer of Oceanic be listed on the floor of the Nigerian Stock Exchange;' Mr. International Bank Pic, Mr. John Aboh; the chairman of Okoloko added. Agricultural Commission of Nigerian Economic SumSpeaking, Managing Director of Bank ofIndustry, Evemit Group (NESG), Mr. Emmanuel Ijewere; the managing lyn Oputu, expressed the readiness of the bank to assist director and chief executive officer of Nigerian Ga$ ComNotore in driving its African green revolution programme. pany (NGC), Engineer Saidu Mohammed and the deputy She said the bank is particularly interested in the village director, Bureau of Public Enterprises (BPE), Malam promoters' programme which Notore is using to improve Sanusi Sule, in Onne, Rivers State. the economic wellbeing oflocal farmers in the North. According to him, more volume wouid be achieved The village promoters who are educated farmers are recwhen tlle new plant, on whose preliminary work would ommended by agricultural development partners, state gov-
eroments and non-governmental organisations for Notore to train on fertilizer best practices. They in turn train other farmers in addition to canvassing retailers to buy the lkg bag of Notore fertilizer. Those who are able to sell more are rewarded. Those who sell 500 bags are rewarded with aGIo phone to monitor sales while those who sell up to 1,500 bags get specially made motor bikes. The motor bikes are fitted with acarrier for 50 lkg bags, which enables the village promoter to reach areas where the roads are not motorable. Ms Oputu, who did not hide her admiration for the programme, said; "I am' particularly happy to see a Nigerian planning for the good of another. Nigeria will import less fertilizer if Notore is supported to increase its output. I therefore request that the head of marketing and agricultural services of Notore picks the best village promoters and put them into a formidable group for the bank to assist But we will not g!V~ .out cash to any of them." For the chairman of agricultural commission ofNESG, "I foresee a brighter future for Nigeria as farmers now get fertilizer directly through the village promoters' initiative. They are not only trained but they have opportunity to train others." He commended Notore for coming up with such great and comprehenSive initiative for farmers. "This shows that you waht a sustainable agricultural development for the country. [t is a fantastic idea for Nigeria," he added.