Peace Mass Transit takes major interest in C&I Leasing through loan stock acquisition

By Charles Abuede

Peace Mass Transit Limited, a transport, haulage and logistics services provider for businesses, individuals and intercity/interstate travellers in Nigeria has announced its acquisition of C&I Leasing Plc’s 313,326,316 units of the Neoma Africa Fund L.L.C. (formerly Aureos Africa Fund, L.L.C.) unsecured variable coupon redeemable convertible loan stock in registered units of N4.75 each.

The company disclosed that the transaction is in a bid to strengthen the company’s credentials as a leading Nigerian-owned service provider with operations in Nigeria, Ghana, and the United Arab Emirates.

C&I Leasing in a filing to the Nigerian Stock Exchange disclosed that the transaction will strengthen the capital base of the company and also improve the clarity of the capital structure. It further disclosed that the loan stock conversions come after the shareholders approved the conversion to ordinary shares at an extraordinary general meeting held in November 2020.

According to the statement by C&I Leasing, signed by the company secretary, Mbanugo Udenze & Co, “The transaction will strengthen the capital base of the company and improve the clarity of the capital structure. This is highly beneficial to the company as the need for a possible redemption of the notes, with the company’s cash resources, has been eliminated. It is against this background that the shareholders approved the conversion of the notes to ordinary shares at an extraordinary general meeting held on 3rd November 2020. The purchase and eventual conversion of the shares will strengthen the company’s credentials as a leading Nigerian-owned service provider with operations in Nigeria, Ghana, and the United Arab Emirates.”

The company further disclosed that the loan stock, when fully converted, will result in the issuance of 987,500,000 ordinary shares of the company, which will represent 55.82 per cent of the issued shares of the company.

C&I Leasing directors, while lauding the transaction, said that it is a positive development for the company, and added that both parties have executed all requisite documents in connection with the transaction.