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Crusader Nigeria Plc
Strategic approach in a bearish market
Crusader Nigeria plc (Crusader) has been on a technical suspension on the floor of Nigerian Stock Exchange (NSE) since 15 February 2008 following its plans to embark on a public offer. The planned offer, which is coming two years after the company raised NGN3 billion from the capital market, was however over-delayed by the bearish trend of the market and the purported moves by the company to restructure its business as a group of companies. But since the bear appears to have overstayed its dominance of the market, Crusader decided to restructure its planned offer in form of a debenture instead of ordinary shares.
With the offer, the company intends to rake in NGN4 billion at a semi-annual coupon rate of 12% to investors. In addition to this, Crusader is also offering a total of 797,884,198 ordinary shares in form of rights at NGN4.50/share. According to the company, the 5-year debenture stocks can be converted to ordinary shares at any point post allotment but at the current market price of NGN7.35/share.
– Purpose of the offer:
The expected combined net issue proceeds of about NGN7.086 billion is to be utilized as follows (see table).
– Method of offer:
Rights issue and offer for subscription of convertible debenture stock
– Payment:
In full on application
– Price:
convertible debenture stock – minimum of NGN5,000; rights issue – NGN4.50 per share
– Opening date: 22 September, 2008
– Closing date: 31 October, 2008
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