Transcorp, Dead or Alive?

[iyke-d]

At this rate, I can nearly predict no western government will buy Nitel. Perhaps egypt or lebanon business men will make offers. State of things getting more dicey.

Kai naira depreciation fit follow as more people demand hard currency to bail out of Yaradua led Nigeria.

I don't think any western government is interested in buying NITEL, maybe you meant western companies. In any event, you have a point there, but let us hope the South Africans thru Vodacom are still interested. Otherwise, NITEL may end up with Lebanese Telecom

On the other hand, should NITEL fail to get another buyer, perhaps the on-going transformation plan including a new billing system may be what NITEL needs to start showing signs of life.

[iyke-d]

But why didn't they allow the judicial process to take it's course in this VN vs FGN issue?

You mean due process? Well, it goes out the door when people surrounding Yar Adua believe its working against their "chop chop" interest. I believe that has been the major reasons besides most of the policy reversals.

How much is bag of cement today, didn't they reverse the ban on cement importation,did that change anything? In the long run, what does that do for local production?

[Babs_O]

I don't think any western government is interested in buying NITEL, maybe you meant western companies. In any event, you have a point there, but let us hope the South Africans thru Vodacom are still interested. Otherwise, NITEL may end up with Lebanese Telecom

On the other hand, should NITEL fail to get another buyer, perhaps the on-going transformation plan including a new billing system may be what NITEL needs to start showing signs of life.

Perhaps may even end being a good thing for TRANSCORP as no international company offers to buy it and Tom's good posturing starts yielding results on time. Though may be initially hard on the market but may pay-off Nigerian investors on the long run as we have less fiddling in our markets by foreign hedge funds. Who will always rip off profits at the detriment of common masses.

[iyke-d]

And in Today's PM news...

EFCC Arrests Ndi Okereke-Onyiuke, D.G., NSE
1 hour ago, 277 views

Director-General of the Nigerian Stock Exchange, Ndi Okereke-Onyiuke, has been arrested by the operatives of the Economic and Financial Crimes Commission,EFCC, over her role in the controversial N100million fundraiser, which she and her group claimed was meant to support the candidacy of Barack Obama, U.S Democratic presidential hopeful.

Onyiuke was arrested in Abuja today, following a petition written to the EFCC by the authorities of the SEC. She is currently under the custody of the EFCC.

Femi Babafemi, EFCC spokesperson, confirmed arrest.

Maybe this new development will force her out as chairman of Transcorp, we need new blood and people with credibility on that board ASAP!

[dannynoko]

Originally Posted by iyke-d

And in Today's PM news...



Maybe this new development will force her out as chairman of Transcorp, we need new blood and people with credibility on that board ASAP!

If she was arrested that will serve her right. I read her response when the Obama campaign organization disowned her and her fund raising. She claimed to have lived in US for years and still does not seem to know how the game is played and its implication of trying to raise money by a non-citizen group.

Well, my point was that I was disapponted with her excuse of raising awareness and mobilization instead of focusing on her NSE job and seeing how to turn the market around. She has used her position to foray into unwanted territory, why can't she raise awareness in the checkered Nigerian political system. She is the only person that I have heard that is chasing the rat when her house is on fire! The capital market is on fire and she should be more concerned with the tumbling market....and not other wise.

[Taipan]

Originally Posted by chidianosike

Dont get me wrong, i'm not saying the downturn in the capital market is about poor economic policies or a bad government. We all knew our capital market indicies were bloated and it was only a matter of time before correction set in, though some of us prefered to play the ostrich by hiding our heads while believing others wont see us since we cant see them, it was bound to happen. My point is that the severity of what we see in the stock market today is as a result of massive capital flight which is a direct consequence of failed investor confidence. Remember a huge chunk of funds in the capital market in much of the last 2 years was from outside the country ...

Baba...worked hard in rebranding/repackaging the country which inspired investors confidence and that helped. The NSE went on road shows abroad ... What do we have today? question is what changed? it would be hard to convince me that it is just about an overvalued market. Fact is that whats happening in the Niger Delta and a lack of governments response is worrying. From that region does all the symptoms of Anarchy and a breakdown of Law and order flow. With these things going on, can we call Nigeria an investors 'safe haven'? ...If you have a chat with Angolans, Sierra Leonians, and Liberians on how they landed where they are today, u would be able to find striking similarities btwn the state of our nation now and theirs then ... Thats another reason why there is massive capital flight besides 'market correction' the way we know it. Just like Hypsy99 would ask ' with what u know about a particular company, would u want to own it'? This is basic question one needs to answer to make a 'Buy desicion'.
The question i would like to ask now would be, If u lived in the US, managing an investment coy would you invest in the NSE today with information available to you? I doubt if you would. unless u want to risk ur career and hard earned rep with ur clients. Thats the way i see the state we are in.

I must confess that you've spoken very well. The market was overvalued but the prevailing conditions for which Yar Adua is responsible have exacerbated the whole thing. I fully agree with you.

[Taipan]

Originally Posted by chidianosike

Bros i don sign out from the market temporarily. the last time i bought was 3 months ago (oceanic at 24naira) thought it had bottomed out but see oceanic today... nobody can predict the bottom. nobody can say for sure how long this will last..
Will wait it out while hoping for a speedy recovery.

Now this actually made me laugh. You see, I was a bit bolder than you were thinking that the market had bottomed out and put in some good money, but now I'm gnashing my teeth!
Anyway, I hope the bears remain in control for much longer while I gather some new funds.

[hispy99]

Originally Posted by Gengen

This is a nice discusion topic. The unfortunate thing is that it is taking place under Transcorp thread!!!

Back to the main issue. We need to ask ourselves the following:

1. Was the agreement with Virgin Nigerian really being broken? Or
2. Is it just a progaganda war by Branson and co?
3. The Nigerain authorities has given Virgin Nigeria enough notice to relocate
4. If Virgin Atlantic wants to sell their shares, many will be willing to pick it up. If we remember clearly, at the formation of the company, the "closed PO" was over-subscribed.
5. There should be respect for the rule here. If the Murtala Moh'd airport is for international flights alone, let it be kept like that.
6. A new way foreign investors operate now is to PAINT everything BAD, thereby driving away others and they continue to make profit
7. Please note that I am not in support of Yaradua's "go-slow" attitude.
8. He should be more agressive. Make up your mind on an issue and quickly execute it.
9. It is said that "History will blame you more for not taking decisions"

Why do you think it was oversubscribed? I am sure a lot of people subscribed to the PO because of the "Virgin" name and the belief that Virgin is an experienced operator in the airline industry. If you take out the Virgin brand and replace it with say ADC, do you think you would have gotten the same level of over-subscription?

[XXCASH]

Originally Posted by hispy99

Why do you think it was oversubscribed? I am sure a lot of people subscribed to the PO because of the "Virgin" name and the belief that Virgin is an experienced operator in the airline industry. If you take out the Virgin brand and replace it with say ADC, do you think you would have gotten the same level of over-subscription?

Correct. Now why ADC hahaha

[panej]

Originally Posted by hispy99

Why do you think it was oversubscribed? I am sure a lot of people subscribed to the PO because of the "Virgin" name and the belief that Virgin is an experienced operator in the airline industry. If you take out the Virgin brand and replace it with say ADC, do you think you would have gotten the same level of over-subscription?

Only an investor who's been sleeping for the last 7 years would touch an Airline stock; even with the proverbial ten-foot pole. They never made money when conditions were favorable what less now. Virgin is looking for an excuse to get out of a bad business in a bad market. A big disadvantage for the Nigerian Stock Exchange is bad publicity and more "Capital Flight" from the economy as a huge bulk of the investments are offshore capital.
This is in no way an excuse for the way they were treated at MM1; judicial process should be allowed to take it's course.

[iluvstocks]

Panej,
what judicial process are you talking about? That there was clearly NO LEGAL agreement between Virgin and the government? That the case was thrown out in a court of LAW? That the Appeal, LEGALLY does NOT prevent the government from ejecting "Virgin" from MMA? Do we always have to suck up to these guys? If anything, this government and the one before it have failed in communicating the facts to the people. How they allowed Branson to poison the minds of people with this kind of baseless propaganda is beyond me

[waaan5]

Originally Posted by iluvstocks

Panej,
what judicial process are you talking about? That there was clearly NO LEGAL agreement between Virgin and the government? That the case was thrown out in a court of LAW? That the Appeal, LEGALLY does NOT prevent the government from ejecting "Virgin" from MMA? Do we always have to suck up to these guys? If anything, this government and the one before it have failed in communicating the facts to the people. How they allowed Branson to poison the minds of people with this kind of baseless propaganda is beyond me

Adding to this - Let me first be clear - I do not support many in(actions) of this government but on this virgin thing, I think we should call a spade a spade. Brandson was just looking for an excuse to dump his venture in Nigeria (note they had to raise the majority of the funds for the takeover from inside the country). Actually he had wanted a take over of Nigeria's landing rights in foregin countries (US, etc. - as a result of reciprocal treaties) as a "national" carrier because of the Virgin Nigeria flag. Now that he sees that is not automatic, he is not interested in the venture again. That's my read of the situation. Nowhere in the civilized world does a business dictate to government. If he thinks it was contempt of court for government to throw him out of the international wing, he should revert to the same court for redress instead of the current posture which some have said tentamounts to cheap blackmail.

[EIC]

We can discuss Virgin Nigeria on the thread Virgin Nigeria

This is a Transcorp thread.

[waaan5]

Oga EIC and guys, sorry for talking off topic in my previous post.

Was'nt TRANSCORP supposed to be the majority owner of NITEL with the acquisition of 51%? Is the NITEL board working at cross purposes with TRANSCORP? If not, why the hestiation to confirm the appointment of the new CEO (see news below)? This beats me. I care because I am still over-exposed in TRANSCORP.
================================================== ======
The Bureau for Public Enterprises (BPE) said on Thursday that NITEL board had not approved the appointment of the Chief Executive Officer (CEO) presented to the public by Transcorp Plc. recently.

Transcorp had last week presented Mr. Kevin Caruso, an American, as the new CEO following the resignation of Malam Abubakar Nahuce in March.

The Director-General of BPE, Mrs Irene Chigbue, disclosed this at the opening of financial bids for the advisory services for the privatisation of NITEL/MTEL in Abuja.

Caruso, an international telecommunications executive with over 20 year’s management experience with United States of America’s AT & T, was named as the new Managing Director and Chief Executive Officer of Nigerian Telecommunications Plc, NITEL in July this year.

ITNewsAfrica.com

[iyke-d]

The Bureau for Public Enterprises (BPE) said on Thursday that NITEL board had not approved the appointment of the Chief Executive Officer (CEO) presented to the public by Transcorp Plc. recently.

Transcorp had last week presented Mr. Kevin Caruso, an American, as the new CEO following the resignation of Malam Abubakar Nahuce in March.

The Director-General of BPE, Mrs Irene Chigbue, disclosed this at the opening of financial bids for the advisory services for the privatisation of NITEL/MTEL in Abuja.

Caruso, an international telecommunications executive with over 20 year’s management experience with United States of America’s AT & T, was named as the new Managing Director and Chief Executive Officer of Nigerian Telecommunications Plc, NITEL in July this year.

ITNewsAfrica.com

That article is dated even though it appeared on that website a couple of days ago...

This is from Thisday.

NITEL Board Ratifies Iseghohi’s Appointment
08.18.2008


Nigeria Tele-communications (NITEL) Plc has ratified the appointment of Mr. Tom Iseghohi as the new chairman of its Board of Directors.
It also ratified the appointments of Mallam Sayyu Dantata and Olorogun O'tega Emerhor as directors.
The new appointees according to a statement made available to THISDAY in Lagos yesterday, are also members of the Board of Directors of Transnational Corporation of Nigeria (Transcorp) Plc.
Iseghohi is the Group Managing Director and Chief Executive Officer and Mallam Dantata and Olorogun Emerhor are both non-executive directors.
In a meeting held in Abuja recently, the Board also acknowledged the appointment of Mr Kevin Caruso as the Managing Director and Chief Executive Officer of the first national telecom carrier.
Mallam Sule Shehu, Deputy General Manager, Corporate Communication of NITEL, said the appointments are in line with NITEL's overall strategy to put the telecom giant back on its feet and position it for the market.