Crusader Nigeria Plc

[hispy99]

Crusader to pay dividend to rights' offer subscribers
By Gbenga Agbana

UNLIKE the past when investors usually wait for months or even years to enjoy dividend on their investments, the trend has been reversed in the rights issue just floated by Crusader Nigeria Plc.

Speaking with journalists in Lagos on Tuesday, the Group Chief Executive of Crusader Nigeria Plc, Mr. Olutola Mobolurin, said that subscribers to the rights issue would be beneficiaries of the 2008 financial year's dividend.

"Those buying the right will benefit from the 2008 financial year. So it is issued cum-dividend."

On the N4 billion convertible debenture stock, Mobolurin said it is a way to hedge against the current happenings in the stock market where the price of equities keep crawling.

"It is a solution to those who are pessimistic about the market. The convertible debenture is offering 12 per cent from now till 2013. It is convertible to equity at N7.35 anytime within the issue period. If at the end of the five years, you don't want to wait, you can sell and take your money. Debenture holders will benefit in any bonus declared by the board and interest is payable every June 30 and December 31.

"No company in the world is on equity alone, and this is a test on the market and a means of ensuring returns to shareholders."

On why the company decided to raise fresh funds through debenture, he explained that the market has become restrictive to equities and debenture became the best option, since investors have been hurt by market downturn.

On the company's plans for the future, he said plans are underway to significantly invest in property and investment banking, while the company's properties would also be rationalised in the next three years.

"We are upscaling our property investment and we are introducing new products soon," he said.

[knightofdelta]

We need more details about this rights and debenture. I am yet to secure the prospectus and yet to get my rights issues. 12% convertible bond is not bad in this our market with an exercise price of N7.35. It seems as if this company has a direction. They either going to be a disaster or a phenomenal success.

I finally got my dividends yesterday and it was a large respite after all the market downturn. Maybe there is hope for the market after all despite the clowns at the helm of affairs... as long as the companies are doing well and have a vision, there is hope.

[threecrown]

Now that crusader is doing a right issue, are they still going to do the po latter? will the TC be lifted after the right issue? because am really waiting for the TC to be lift so that the bears can embrace the price to bring it down to my entry level.

[knightofdelta]

i doubt it very much that they are going to do a PO anytime in the future. I am sure that they wanted to float a hybrid offer including a PO but they probably had to restructure because of the present market sentiments. The dividends they send was probably just to make investors happy with them and buy the rights...

[Yomik]

Originally Posted by knightofdelta

We need more details about this rights and debenture. I am yet to secure the prospectus and yet to get my rights issues. 12% convertible bond is not bad in this our market with an exercise price of N7.35. It seems as if this company has a direction. They either going to be a disaster or a phenomenal success.

I finally got my dividends yesterday and it was a large respite after all the market downturn. Maybe there is hope for the market after all despite the clowns at the helm of affairs... as long as the companies are doing well and have a vision, there is hope.

Hello guys, can someone explain to me in detail what crusader is talking about I don’t get yet, I understand that they are not doing IPOs anymore, I hope I am right on that. Now they are now talking about rights issue and 12%, that’s exactly were I get lost. Does that mean that they will have certain percentage allocate to their formal stocks holder and if that is the case, what percentage are we talking about and at what rate?
Thanks

[chokit]

Originally Posted by Yomik

Hello guys, can someone explain to me in detail what crusader is talking about I don’t get yet, I understand that they are not doing IPOs anymore, I hope I am right on that. Now they are now talking about rights issue and 12%, that’s exactly were I get lost. Does that mean that they will have certain percentage allocate to their formal stocks holder and if that is the case, what percentage are we talking about and at what rate?
Thanks

They are not doing any PO at the moment what they are offering is a right offer and that is only for their present shareholders and this will make each one of them to buy at discounct which is 4.50 that is if they exercise the right.What is available to all and sundaries is the bond or convertible debenture which means taking debt or borrowing money from the investng pubilc to be paid back to them with interest of 12% at the date stated.Like they explained you may eventually convert your money to shares anytime you want and also interest on it will be paid at the end of june each year.

I hope the offer prospectus will be given anytime because i see exercise to be a good one also the idea of partaking in the next dividend by anyone that exercise his right.

[Taipan]

Originally Posted by Yomik

Hello guys, can someone explain to me in detail what crusader is talking about I don’t get yet, I understand that they are not doing IPOs anymore, I hope I am right on that. Now they are now talking about rights issue and 12%, that’s exactly were I get lost. Does that mean that they will have certain percentage allocate to their formal stocks holder and if that is the case, what percentage are we talking about and at what rate?
Thanks

For those like me who don't know what a debenture is:

Debenture is an unsecured debt backed only by the company, not by any collateral. Although there are no pledges of specific assets, debenture holders are still considered creditors if bankruptcy occurs. Debentures are usually used by governments and large companies. They can be a great tool to raise funds and still leave specific assets free to be used for financing in the future.

Another type of debenture is known as a convertible debenture. Instead of receiving payment when the debenture matures, the buyer of the debenture can chose to take stock in the company. With convertible debentures, the cost of borrowing is lower for the seller since the buyer has the option of converting it into stock.

Debentures are tools used by large companies to raise capital for their projects and operations. This is known as a debt offering since the company literally goes into debt to the investors until the price of the debenture is paid back, plus interest, or until it is converted into stock. The company must record this debt in their balance sheet. If bankruptcy occurs, the debenture holders are considered creditors and must be paid back by the companies remaining assets. Debentures are a way for companies to raise capital without having to use their assets or give up ownership in their company. This leaves their assets free to do other things to generate capital for the business.

from Debenture
...
I believe Crusader is offering a Convertible Debenture i.e. buyers of the debenture can convert it into shares later on. I think this presents a great opportunity if only for the purpose of diversification.

[knightofdelta]

In addition to Taipan's post...

Giving out 12% per annum as interest is kind of low considering the fact that the present inflation rate is around 14%, so in the short run it is not going to conserve the purchasing power of the investor. But it is by far better than the current deposit bank rates and it should have been higher that 12% if the bond were not convertible. Crusader had to reduce the interest rate they will pay on the debenture because of the fact that it is convertible and the value of the conversion option will be much higher when the market rebounds. Hopefully, we hope the market will rebound before 2013, and Crusader share price will be much more higher than N7.35, when the debenture would have to be paid back to the investors, at par.

The only negative aspect of this arrangement is that convertibility will lead to increased amount of potentially dilutive shares, which will in the long run reduce the earning per share of the common investor.

[billions]

Proshare News and Analysis
Crusader Group assures investors of 12% pa ROI
Posted Wednesday, September 24, 2008


- As N7.590 billion hybrid offer opens



PETER OBIORA

Proshare NI

September 22, 2008 at 15: 31 GMT

Institutional Investor, Crusader Group has assured investors of 12 percent Per Annum (PA) in the Crusader Convertible Debenture Offer of N4.0 billion. This was contained in a document made available to Proshare NI today in Lagos Nigeria.

However, the document affirms that the 12 percent Unsecured Convertible Debenture Stock 2013 is convertible into Ordinary Shares anytime till June 11, 2013 at a fixed price of N7.35 Kobo per share.

The Crusader Group affirms that anytime investors choose, they could convert their shares at the current price or their principal at maturity; which is guaranteed till year 2013.

To raise the N7.590 billion, Crusader Group is also offering by way of Rights Issue 797,884,198 Ordinary Shares of 50 Kobo each at N4.50 Kobo per share amounting to N3,590,478, 891 making a total of N7,590,478,891.

As earlier published on Proshare’s website, proceeds of the hybrid offer would be used to create a strong and fully diversified financial services group.

To achieve these, Crusader Group is expected to acquire new businesses such as investing into the Real Estate sector of the Nigerian economy and the Financial Services sector

Apart from these, the Financial Services Group would expand the company’s distribution network, expand its existing businesses/products and upgrade its information technology.

Also as earlier published on Proshare’s website, the acquisition of new financial services businesses will take about N2.42 billion; representing is 34 percent of the total N7.590 billion to be raised.

While N2.0 billion about 28.22 percent of the total net funds to be raised would be invested into insurance companies.

The hybrid offer is expected to open Wednesday 24, 2008 and Leading Issuing House is Diamond Bank Plc.

[hispy99]

Investors endorse Crusader’s offer
By Nike Popoola
Published: Monday, 29 Sep 2008
As Crusader Nigeria Plc is set to raise new capital soon at the stock market, there were strong indications that its proposed offer for subscription will be oversubscribed as investors has begun to shown their acceptance of the offer.

At the company investor’s forum in Lagos on Thursday, brokers and investors agreed that the company’s financial prospects suggested that the company’s offer would soon be scrambled for.

Mr. Seun Oluwole, a stockbroker who represented the Doyen of stockbrokers encouraged investors not to allow the current bearish outlook of the stock market to discourage them.

He said that Crusader, had recorded notable developments since the end of consolidation, adding that the company had bright prospects for the future.

The gross proceeds of the offer being made through the company’s prospectus and the concurrent rights issue total N7.59bn, made up of N3.59bn through the rights issue of 797.9m ordinary shares of 50k each at N4.50 per share and N4bn through the offer for subscription of N4bn unsecured convertible debenture maturing in 2013 at the rate of 12 per cent at par.

By this, the offer is expected to add a total of N7.1bn net of expenses to the company’s shareholders funds when the convertible debenture are fully converted.

The Group Managing Director, Mr. Olutola Mobolurin, said that the purpose of the capital raising exercise was to enable the company create a strong and fully diversified financial services group providing one stop financial services solutions to its clientele.

“The proceeds of these offers will be used to finance acquisitioin of new businesses, expansion of its existing businesses and products, expansion of its distribution network and upgrading its information technology infrastructure,” he said.

Following the consolidation exercise of the Nigerian insurance industry, he said, Crusader Insurance Nigeria Plc, now renamed Crusader Nigeria Plc was transformed to two wholly owned insurance subsidiaries

The companies which includes the life and general insurance businesses he noted, were expanding its operations into other sectors like real estate and some carefully selected sub-sectors of the financial services industry.

[hispy99]

Crusader postpones planned offer, launches convertible deben
Posted Tuesday, September 30, 2008




Wary of the prevailing bearish trend on the Nigerian Stock Exchange (NSE), the Group Chief Executive of Crusader Nigeria Plc, Mr. Olutola Mobolurin has disclosed investment in convertible debenture as a safer option for equity-weary and risk-averse investors.



According to him, the prevailing market condition has made investors lose interest in investing in the capital market due to the persistent fall in the prices of listed equities.



At an interactive session with financial journalists in Lagos, recently, Mobolurin said that the company, which is currently raising N7 billion from the Nigerian Stock Exchange (NSE) through rights issue and convertible debenture, in a quick reaction to the decline investors' appetite for equity shares in the market, has postponed its planned offer for subscription of 1.2 billion ordinary shares of 50 kobo each.



He added that the company's N4 billion, 12 per cent unsecured convertible debenture stock, which is being offered at par to the general investing public, is to allay their fears of price loss by giving them a high grade investment instrument with a guaranteed high cash income and capital with the option to switch to shares any time the investor desires at a price of N7.35 per share over the next five years.



In his words: "Due to the prevailing market condition and persistent fall in the price of shares, the Crusader convertible debenture guarantees investors, 12 per cent interest per annum till 2013. It also guarantees investors conversion of the convertible debenture into Crusader's ordinary shares at the current market price of N7.35 per share, at any time the investor chooses between now and June 30, 2013.



"It does not matter what the price of Crusader share is in the market, whether it is N10 or N40, every convertible debenture holder will be able to buy the shares at a guaranteed price of N7.35 per share till June 30, 2013. In the event of the company giving a bonus, the convertible debenture holder will also participate," he added.



He further explained that the convertible debenture, which he described as a brilliant alternative to equity weary and risk-averse investors, allows investors to enjoy high cash income returns while waiting for the equity market to recover and at the same time locking in a purchase price that is guaranteed for five years.



The company is presently offering 797,884,198 ordinary shares of 50 kobo each at N4.50 per share on the basis of one ordinary share for every shares held as at February 25, 2008 alongside a N4 billion, 12 per cent unsecured convertible debenture stock.



By these offers, the company hopes to raise N7.086 billion from investors to finance the creation of a strong and broad based financial services group through the acquisition of new business and expansion of its existing businesses and products. - Guardian

[knightofdelta]

Originally Posted by hispy99

Crusader postpones planned offer, launches convertible deben
Posted Tuesday, September 30, 2008




Wary of the prevailing bearish trend on the Nigerian Stock Exchange (NSE), the Group Chief Executive of Crusader Nigeria Plc, Mr. Olutola Mobolurin has disclosed investment in convertible debenture as a safer option for equity-weary and risk-averse investors.



According to him, the prevailing market condition has made investors lose interest in investing in the capital market due to the persistent fall in the prices of listed equities.



At an interactive session with financial journalists in Lagos, recently, Mobolurin said that the company, which is currently raising N7 billion from the Nigerian Stock Exchange (NSE) through rights issue and convertible debenture, in a quick reaction to the decline investors' appetite for equity shares in the market, has postponed its planned offer for subscription of 1.2 billion ordinary shares of 50 kobo each.



He added that the company's N4 billion, 12 per cent unsecured convertible debenture stock, which is being offered at par to the general investing public, is to allay their fears of price loss by giving them a high grade investment instrument with a guaranteed high cash income and capital with the option to switch to shares any time the investor desires at a price of N7.35 per share over the next five years.



In his words: "Due to the prevailing market condition and persistent fall in the price of shares, the Crusader convertible debenture guarantees investors, 12 per cent interest per annum till 2013. It also guarantees investors conversion of the convertible debenture into Crusader's ordinary shares at the current market price of N7.35 per share, at any time the investor chooses between now and June 30, 2013.



"It does not matter what the price of Crusader share is in the market, whether it is N10 or N40, every convertible debenture holder will be able to buy the shares at a guaranteed price of N7.35 per share till June 30, 2013. In the event of the company giving a bonus, the convertible debenture holder will also participate," he added.



He further explained that the convertible debenture, which he described as a brilliant alternative to equity weary and risk-averse investors, allows investors to enjoy high cash income returns while waiting for the equity market to recover and at the same time locking in a purchase price that is guaranteed for five years.



The company is presently offering 797,884,198 ordinary shares of 50 kobo each at N4.50 per share on the basis of one ordinary share for every shares held as at February 25, 2008 alongside a N4 billion, 12 per cent unsecured convertible debenture stock.



By these offers, the company hopes to raise N7.086 billion from investors to finance the creation of a strong and broad based financial services group through the acquisition of new business and expansion of its existing businesses and products. - Guardian

Sounds interesting. I have never heard of debentures enjoying in a bonus. I need some explanation here...

Does it mean that anytime there is a bonus, investors who are yet to convert their bonds into shares will have an increase in their bonds with an attendant increase in returns from annual interests or bonus will only be given to shares that have been converted (which makes more sense)?

[hispy99]

Originally Posted by knightofdelta

Sounds interesting. I have never heard of debentures enjoying in a bonus. I need some explanation here...

Does it mean that anytime there is a bonus, investors who are yet to convert their bonds into shares will have an increase in their bonds with an attendant increase in returns from annual interests or bonus will only be given to shares that have been converted (which makes more sense)?

I don't think the bonus will increase the bonds for debenture holder, rather I believe it will affect the conversion price. Currently, the conversion price is N7.35, so if a bonus is given, then this price will be adjusted just like the stock price is adjusted for bonuses; this will mean you will get more shares when you convert your debentures. For example, if currently will get 100k shares when you convert at N7.35, then you will get 125k shares if the company does a 4 for 1 bonus.

[chokit]

Crusader Debenture/Rights closes 300908
Posted Wednesday, October 1, 2008
-Projects 36 Kobo dividend in 2010 FYE



PETER OBIORA

Proshare NI

September 30, 2008 at 12: 27 GMT





Crusader Nigeria Plc (CRUSADER) 4.0 billion 12 percent Unsecured Convertible Debenture Stock 2013 offer and 797.884 Ordinary Shares of 50 Kobo each by way of Rights would officially close today Tuesday September 30, 2008. As the company projects a 36 Kobo dividend payout in its 2010 Financial Year End (FYE).



Forecast Offer Statistics extracted from the Reporting Accountant’s Report shows that Crusader Nigeria has projected to offer is i