Top 10 Nigerian companies to watch in 2015

As a result of activities that took place last year in various firms, BusinessDay after speaking with analysts has compiled a list of the top ten companies with potential to do big things in 2015.

Mansard Insurance

French insurer AXA last year entered into the Nigerian market by buying the holding company of Mansard Insurance for $246 million in cash.

This deal, covers 100 percent of Assur Africa holdings which holds a 77 percent stakes in Mansard Insurance, Nigeria’s fourth largest insurer company with activities in both property and casualty and life savings. With its latest acquisition of 60 percent Penman Pension Limited, makes Mansard one of the top 10 firms to watch out in 2015.

Lafarge Africa

The newly-emerged Lafarge Africa is showing strong confidence in the Nigerian economy, having entered into a phase that can best be described as a consolidation one.

Exactly last year, Lafarge completed the acquisition of its shareholdings in Lafarge South Africa Holdings (Pty) Limited (LSAH), the United Cement Company of Nigeria Limited (Unicem) through Egyptian Cement Holding BV, AshakaCem plc (Ashaka) and Atlas Cement Company Limited (Atlas). The transaction now places the cement maker as the sixth largest entity listed on the Nigerian Stock Exchange (NSE), with a market capitalisation of N521.9 billion.

Lafarge Africa now has 12 million metric tons (MT) capacity, with 5.5MT additional capacity by mid-2017. It is expected that the transaction will help the firm actualise $350 million growth in the balance sheet.

Oando Plc

With its acquisition of ConocoPhillips mid Last year, the company became the largest indigenous oil and gas producer and also with shareholders approved for divestment from downstream business. All this factors have made Oando plc one of the top ten companies to watch in 2015.

Skye Bank

With its recent acquisition of Mainstreet Bank, top Nigerian financial institution, Skye Bank, which has a strong presence in the South-West, hopes to expand its penetration to other regions in the country.

Both Skye and Mainstreet banks share a mutual focus on retail and commercial banking, thereby creating a synergy in the overall operations of a bigger Skye Bank.

Heritage Bank

After investing N56 billion to acquire Enterprise Bank Limited, Heritage Bank Company Limited has automatically become a national bank that has as its mantra, transfer of wealth, wealth creation and innovation, among others. The acquisition is agreement with African Export-Import Bank’s (Afreximbank) $272 million facility.

Presco

Nigeria Agricultural giant Presco last year embark on projects that will drive growth and maximise the value of share holders. It has proposed to raise N3 billion from right issues to boost its capital for larger growth and expansion.

As Agricultural reforms by the Federal government continue to boost the sector, Presco is one of the companies to watch.

Transcorp

Transnational Corporation of Nigeria’s recognition by the Nigerian Stock Exchange as the most compliant listed company speaks volumes about how the company has been transformed.

Transcorp Plc announced plans last year to build a new hotel in Lagos in partnership with the Hilton Worldwide.

Transcorp Plc’s 2013 annual report shows that Transnational Hotels and Tourism Services Limited (THTSL), the hospitality arm, earned N15 billion in revenues. In January, it raised N4.2 billion from its recent initial public offer (IPO) which indicates a 52 percent subscription level.

EcoBank Transnational Inc.

Qatar National Bank, Middle East’s biggest lender by market value, bought an 11 percent stake in Ecobank for $283 million last year to become its top shareholder. This followed the purchase of a 12.5 percent stake valued at $290 million earlier that month; it was QNB’s first acquisition in sub-Saharan Africa.

Nedbank Group Ltd. (NED), the South African lender controlled by Old Mutual Plc, also bought a 20 percent of stake of Ecobank Transnational Inc. (ETI.). Nedbank’s move makes it the second-biggest shareholder in Ecobank and gives it access to the lender’s customers in more than 30 African countries.

Dangote Cement

With Dangote Cement Plc’s announcement last year of 41 percent reduction in the prices of cement, this provides the opportunity for increased construction and building activities.

SEPLAT

London-listed independent oil and gas company, Afren plc, says it has received what it called a “highly preliminary approach” from Nigerian oil company, Seplat Petroleum Development Company plc, regarding a possible combination with Afren.

Industry analysts have predicted a wave of merger and acquisition deals following the steep decline in global oil prices over the past six months. The price of global benchmark Brent crude has lost almost half of its value since its mid-June spike of $115 per barrel.

JOSEPHINE OKOJIE