Peace Mass Transit buys major stake in C&I Leasing with Neoma Africa’s loan stock acquisition

Peace Mass Transit buys major stake in C&I Leasing with Neoma Africa’s loan stock acquisition
January 05
17:00 2021

Peace Mass Transit, a transport and logistics services provider, has acquired C&I Leasing Plc’s 313.3 million 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.

In a notice to the Nigerian Stock Exchange, signed by Mbanugo Udenze & Co, the company secretary, the transaction will strengthen the capital base of the company and also improve the clarity of the capital structure.

“The loan stock, when fully converted, will result in the issuance of 987,500,000 (Nine Hundred and Eighty-Seven Million and Five Hundred Thousand) Ordinary Shares of the Company which will represent 55.82% of the issued shares of the Company,” the statement read.

A loan stock is an hybrid security that has some qualities of a debt instrument and some characteristics of an equity warrant. Like a bond, it pays a fixed interest to the holder semi-annually or annually at a predetermined rate and can also be converted into common shares of stock, which can appreciate in value for the investor.


Shareholders had in November, at the company’s extra-ordinary general meeting in Lagos, unanimously approved the conversion of the $10 million loan to equity for Neoma Africa Fund.

The loan was obtained by the Nigerian firm and it matured in 2018.

C&I Leasing had in January 2019 announced that Abraaj, the managers of the Aureos Africa Fund, agreed to convert the $10m loan stock in the quoted company to equity.






1 Comment

  1. Gbenu Sunday
    Gbenu Sunday January 06, 07:51

    Good development.

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