DEAP Capital Management & Trust Plc,  is  an investment banking firm listed on the Nigerian Stock Exchange(NSE) since 2007 is repositioning its business following a significant dip in the fortunes of the company over the years since the financial crisis of 2009/10.

The company has since appointed a  new board of directors with a clear mandate to return the company to profitability. This move is one of the nine (9) resolutions passed by the investors in the company. It should be noted that the NSE is yet to formally/officially communicate this to the market.

Proshare considers this instructive and would await the NSE official statement which should address the resolution of any and all issues included SEC related matters.  

According to the company,  part of the strategic turn-around plan is a specific mandated given to the directors to go into negotiations with individual creditors and secure an  agreement for the conversion of their non-bank debts to ordinary shares of company at a price to be determined by the directors and agreed with the creditors.

“The directors are also to restructure any part of the existing non-bank debts of the company that the creditors are unwilling to convert into ordinary shares in the company, into restructured deposits to be repaid out of the future cash flow of the company over a maximum period of three (3) years starting from January 2016.

The directors are further required to initiate and conclude discussions and negotiations with prospective investors to recapitalize the company through the raising of additional equity from investors.

 Part of the process will also include entering into discussions with any interested party, company or companies, interested in any scheme of merger, acquisition or any combinations thereof,” the company said in a statement.

The non-bank debts of the company stood at N2.46 billion as at June 30, 2014. And there are very strong indications that the creditors are quite amenable to converting their debts to ordinary shares, a development that will clean out the books of the company and put it in good stead for enhanced business, profitability, and growth.

The new board also received the authority of the shareholders to, if and when deemed necessary, raise additional capital whether by way of public offering, special/private placement, rights issue or other methods, through issuance of shares, global depository receipts, convertibles or non-convertibles, medium term notes, bonds and or any other instruments.

The offering could be either a stand-alone or by way of a programme, in such tranches, series or proportions, at such coupon or interest rates within such maturity periods, and such terms and conditions including through a book building process or other process; all of which shall be as determined by the board of directors, subject to obtaining the approvals of the relevant regulatory authorities.

The new board is led by Dr. Adelani Kehinde Oniwinde as chairman and Mr. Jacob Esan as managing director. Oniwinde holds a doctorate degree in Business Management and a Fellowship of the Chartered Insurance Institute of London. He retired at the level of the Vice Executive Chairman of Niger Insurance Plc, where he worked for 23 years. 

Jacob Esan, according to  Scarborough Group, is “one of Nigeria’s leading investment bankers, is the Founder and Chairman of Jacob Esan Plc. a principal investment company. He was a former Director at DEAP Capital Management & Trust Plc, served with the Central Bank of Nigeria (CBN) as a lead consultant for the Capital Market framework/strategy and a consultant for the Regulatory Framework/Strategy of the FSS Vision 20 2020. He has also advised several facilitating financial services bodies in Nigeria”.