Nestle shareholders demand bonus shares in 2014

Some shareholders of Nestle Nigeria Plc on Monday demanded the issuance of bonus shares by the company, in the current 2014 financial year.

The shareholders made the demand at the company’s 45th Annual General Meeting (AGM), held in Lagos.

They said bonus shares to shareholders would increase the company’s market capitalisation on the Nigerian Stock Exchange (NSE).

According to them, Nestle’s recapitalisation would enhance minority shareholders stake and create activities in the company’s listed shares on the NSE.

Mr Sunny Nwosu, National Coordinator, Independent Shareholders Association of Nigeria, said that the bonus issue would increase the company’s share capital.

Nwosu said that the recapitalisation would increase the company’s number of shares tradable on the NSE.

He also urged the company to enhance its support to farmers by bringing them to terms with modern technology.

Mr Timothy Adesiyan, President, Nigeria Shareholders Solidarity Association, commended the company for the impressive results posted for the financial year ended Dec. 31, 2013.

Adesiyan said that the script issue would make the company’s shares more available on the NSE.

The News Agency of Nigeria (NAN) reports that the company declared a total dividend of N20.21 billion in the period under review.

The company declared a final dividend of N24 and paid an interim dividend of N1.50 per share, bringing the total dividend to N25.50 per ordinary share of 50k held by investors.

The amount paid as cash dividend showed an increase of 27.5 per cent over the N20 paid the previous year.

Addressing the shareholders at the meeting, Mr David Ifezulike, Nestle Chairman, attributed the performance to short-term and long-term initiatives embarked upon by the company to ensure sustainable future growth.

Ifezulike said that the company would commission a new ultra-modern water factory in Abaji, near Abuja, in 2015, to stimulate sustainable growth, increase market share and promote healthy hydration.

He said that the new facility, with potential for expansion, would cost N4.6 billion.

The chairman said that the new investment underpinned the company’s strong belief in the local market and the resilience of the Nigeria economy.

He said that the company had earlier inaugurated an ultra -modern distribution centre in Agbara, Ogun state, in 2013.

According to him, the new facility which cost N5.42 billion, is key to Nestle’s growth in Nigeria.

Ifezulike, however, urged the shareholders to embrace the e-dividend and e-bonus platform for quick payment of dividends.

He said that their compliance would reduce the magnitude of unclaimed dividends and share certificates, and also eliminate the delay or loss of dividend warrants.

NAN also reports that the company’s unclaimed dividends as at Dec. 9, 2013 stood at N104.22 million. (NAN)

One Comment

1. 

   Josiah Ilori

   May 12, 2014 at 11:14 pm

   The issue of bonus share should be visited by Nestle seriously. Nestle should make more of its shares available to the general public. Shareholders generally appreciate the contributions of wealth to the Nigerian economy by Nestle and staff and wish the company outstanding success in all its endeavors. it is expected that management will look into the script/bonus issue for the financial year ending Decemver, 2014.