FMDQ Securities Exchange has acquired
1,080,641,902 units of CSCS shares in transaction valued at about N20billion.
This development confirms BusinessDay report about a year and half ago on FMDQ Grou paying about N20billion to acquire 21.6 percent equity stake in Central Securities Clearing System (CSCS) Plc.
Transactions of this nature usually go with a premium of between 20 percent to 30 percent, according to the informed market source.
FMDQ is one of Africa’s leading financial market infrastructure groups with ownership in a host of companies offering services that are vertically integrated into the financial market system.
CSCS is a leading clearinghouse for capital market operations in Africa’s largest economy.
FMDQ Group agreed to buy out shares owned by Leadway Insurance and that of Artemis Limited, a vehicle owned by Verod Capital.
CSCS Plc has 5 billion tradable securities in issue, each of the shares trade at N17.86 on the NASD Over The Counter (OTC) market as at Friday July 7.
With this deal, the share price of CSCS could rally further. Its current Capitalisation is N89.300billion.
Leadway and Artemis owns 16.6 percent and 5 percent stakes respectively in CSCS. Their stakes combined are 1.08billion units.
As at December 31, 2022, CSCS Plc has 5 shareholders with over 5 percent ownership. They are Nigerian Exchange Group (44.18percent). Access Bank (7.5percent), UBA (5.37percent, Artemis Limited (16.6percent), Leadway Insurance (5percent) and Others (21.35 percent).
On Friday June 30, 2023, there was a significant trade of shares of Central Securities Clearing System Plc (‘CSCS’ or ‘our Company’) on the NASD OTC Plc. Two major shareholders of CSCS, Artemis Limited and ZPC Leadway Insurance Prem. Coll & Invest, who previously held 16.61percent (830,641,902 units) and 5percent (250,000,000 units) shareholding respectively, sold their shares to FMDQ OTC Plc (FMDQ). As a result, FMDQ is now a shareholder with a 21.6 percent equity stake in CSCS.
The Central Securities Clearing System Plc is a Financial Market Infrastructure (FMI) Company that undertakes the business of depository, clearing and settling of securities traded in the Nigerian Capital Market.
The Company was licensed by the Securities and Exchange Commission and operates a computerized depository, clearing, settlement and delivery system for transactions in shares and fixed income securities listed/traded on the Nigerian Exchange Limited, NASD OTC Exchange or any other authorized/organised Securities Trading Platform in the Nigerian Capital
Market.
CSCS was licensed by the Securities and Exchange Commission as an agent for Central Depository, Clearing and Settlement of transactions in the capital market. CSCS keeps and maintains an electronic book‐entry record of all securities to facilitate the safekeeping and easy transfer of securities between parties during a trade.
The Company also acts as a depository for Federal Government of Nigeria (FGN) Bonds, Municipal and Corporate Debt instruments. The Company has one (1) subsidiary company namely: Insurance Repository Nigeria Limited and one (1) associate Company ‐ NG Clearing Limited. Insurance
Repository Nigeria Limited was incorporated in Nigeria and was yet to commence operations as at 31 December 2022. Its principal objective is to enhance the record keeping of insurance data and policies.
