Julius Berger gets regulatory warning for insider trading during closed period

The NGX Regulation Limited has cautioned Julius Berger Nigeria Plc for engaging in insider dealing in the construction giant’s shares during Closed Period.

The close period, in accounting, is the time span covering the completion of a company’s finances and the subsequent release of those financials to the public.

During the close period, insiders are prohibited from trading company shares or making any relevant information public before it is officially announced.

According to NGX Regulation in its May 3 X-Complaince Report, the warning was communicated to the construction giant Julius Berger through a “Caution Letter” where the NGX noted Julius Berger violated the provisions of Rule 17:18: Period of Closure.

The X-Compliance Report is a transparency initiative of NGX Regulation Limited (NGX RegCo) designed to maintain market integrity and protect investors by providing compliance related information on all listed companies.

Julius Berger had in a notice on March 1, 2024 noted “By the provisions of the amended Rule 17.18, Period of Closure, issued by the Nigerian Exchange Limited (NGX), the closed period in respect of the financial statements start at “the end of the financial period in review” and up to 24 (twenty-four) hours after the price sensitive information is submitted to the Exchange via its Issuers’ Portal. The financial year-end for Julius Berger Nigeria Plc and all its subsidiaries (Julius Berger) is December 31”.

“In the light of the above, the Company had commenced a closed period (the Closed Period) from January 1, 2024 to 24 hours after the Audited Consolidated Financial Results for the Financial year ended December 31, 2023 (ACFS 2023) is released to the public.

“In this period, all who receive the Notice of Closed Period, who are considered “Insiders” in Julius Berger pursuant to the provisions of the Companies and Allied Matters Act, 2020 (CAMA 2020), the rules and regulations of the Securities and Exchange Commission (SEC) and the NGX, are under restriction not to trade or deal in the equity of the Company. The Closed Period shall remain until the financial year end 2023 is released to the Public.

“The market is hereby informed that the Audit Committees and the Group Board of Julius Berger Nigeria Plc will meet on Tuesday March 26, 2024 and Thursday March 28, 2024 respectively, to consider the ACFS 2023 which will be released to the market thereafter in accordance with the published Release Calendar,” according to the March 1 notice signed Cecilia E. Madueke, Company Secretary, Julius Berger Nigeria Plc.

Julius Berger recently proposed a final dividend of N3kobo per 50 kobo share subject to shareholders’ approval and appropriate withholding tax will be paid to shareholders whose names appear in the Register of Members as at the close of business on the May 31, 2024.

The register of shareholders of Julius Berger will be closed on June 3, 2024 to June 5, 2024, while on June 21, 2024, dividends will be paid electronically to shareholders whose names appear on the Register of Members as at May 31, 2024 and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.