Investors Increase Demand for C & I Leasing Shares on Brighter Prospects
C Investors increased demand for the shares of C & I Leasing Plc, a leasing and business service conglomerate last week as they see brighter prospects in the company. This followed news that the company had concluded the buyout of 27.5 per cent minority stake in C & I Petrotech Marine Limited (CPML).
The company disclosed that they engaged engaged an independent adviser to value the shares of the CMPL before the consummating the buyout of the 27.5 per cent minority stake in a joint venture that presently deploy vessels to oil firms.
Consequently, CMPL is now fully owned subsidiary of C & I Leasing Plc. And in apparent response to the development, investors increased demand for the stock, which lifted its price by 10.2 per cent to close higher at N2.48 per share last Friday.
C & I Leasing recently raised N7 billion bond to finance its business expansion and restructuring of debts over a period of five years among other initiatives which will guarantee increased profit margins and returns for shareholders.
The Managing Director of C & I Leasing Plc, Mr. Andrew Otike-Odibi had said the firm’s journey into marine sector as a service provider for the oil and gas sector started through CPML joint venture in 2010 and has over the years culminated in the ownership of over 20 vessels consisting of crew boats, pilot boats, patrol boats, and platform support vessels for providing services such as line and hose handling, berthing and escort services, mooring support, fire-fighting, pollution control, security and floating and self-elevating platforms.
“This is clearly reiterate our commitment to growing our marine services business and gaining leadership in the field. It is hoped that this buyout will further the company’s drive to restructuring and repositioning our marine business for enhanced profitability,” he added.
The company has been recording improved financial results in recent times, which the MD had attributed to the strength in the diversity of its business.
He said: “Our three business lines namely, marine, fleet management and outsourcing are gaining strength in their different markets with each contributing positively to the overall performance of the business. This is not without the difficulties faced in the operating environment with rising financing and operating costs coupled with continuous pressure on turnover. We remain focused on sustaining delivery of superior customer service and continued diversification of earnings, to take advantage of growth opportunities in the markets and business segments we operate in.”