Chams Plc changes listing to HoldCo to increase shareholders’ value

Chams Plc, a fintech and digital payments solutions group, says it has transitioned to a holding company on the Nigerian Exchange (NGX) to increase shareholders’ value.

The company said the transition came 37 years after being founded.

Gavin Young, group managing director, Chams Plc, said this at a press conference held in Lagos on Wednesday. 

According to Young, Chams started the process in 2021 to meet requirements for the renewal and recapitalisation of its mobile money and switching payment licenses.

“Part of the requirements of the Central Bank of Nigeria was for Chams to change its listing to a non-operating holding company, which we have now successfully achieved. This change takes immediate effect, and we will now be known as Chams Holding Company Plc,” Young said.

“Although the migration to a HoldCo was a major component of our Consumer-Africa-Digital (CAD) 2024 Unicorn vision, led by our founder and chairman Demola Aladekomo and our esteemed board of directors in 2020, it was also mandated by the Central Bank of Nigeria, as Chams Plc is a majority stakeholder in two major CBN payment licences via our subsidiaries ChamsSwitch Limited and ChamsMobile Limited.

“Listing as a Holding Company means that we are focusing on our existing subsidiaries and business assets to build shareholder value, whilst incubating and growing other businesses within our subsidiaries and also creating new subsidiaries as part of the Holding Company structure.

“The group has focussed primarily on growing its consumer and business digital payment solutions whilst also expanding other potential and current investments in the digital space to ensure sustainable value for our stakeholders. All our businesses have returned improved performances, promising growth and good value, and we are working hard to ensure this continues.” 

Young said that the company’s financial results showed that it has significantly grown its business assets, as it has implemented its unicorn vision.

“For example, during 2021, we resurrected ChamsMobile Ltd, recapitalised the company and provided income-generating assets to them. They acquired systems and other operating infrastructure and commenced implementing their Kegow Mobile Money and Financial Agent Services towards being a leading Mobile Money Fintech payments company, across Africa,” he said. 

“Likewise, ChamsSwitch Ltd also recapitalised during 2021 and substantially increased their transactional payment volumes. This resulted in a significant increase in the value of the company.

“ChamsAccess Ltd has continued their good performance and delivered consistent results for the group. They also introduced some exciting new digital solutions, which are showing rapid growth. PensionCentral is one of those.

“Our other subsidiary; Card Centre Nig. Ltd; expanded and diversified their business and secured a major international partnership, which culminated in the installation of new SIM card infrastructure and acquiring substantial SIM card business. This is already contributing to their improved performance and a significant increase in value for stakeholders.” 

Speaking on the recent ban on the importation of subscriber identity module (SIM) card by the federal government, Lekan Latona, chief operations officer, Card Centre Limited, expressed confidence in the opportunities ahead in growing market share. 

“I am very pleased that, together with close support from our chairman, Directors and senior management across the Chams Group, we have expanded and diversified our business through international and local partnerships. We have installed significant additional SIM card production and personalisation infrastructure and have secured a major local contract,” he said. 

“We have also introduced a new financial services card chip into the local market as part of our strategy to grow the financial card business. I’m pleased to say that it’s attracted major orders from local banks. This will contribute to our improved performance and sustainable value for stakeholders.”