The South African Pay-TV operator, Multichoice Group, mentioned it has written off the N31.6 billion ($21 million) money it had with the not too long ago liquidated Heritage Bank.
The Group disclosed this in its outcomes for the six months ended September 30, 2024.
The Group had earlier in its annual report for FY 2024 launched in June reported a deposit of N33.7 billion with the financial institution as of the 2024 fiscal yr finish on March 31, 2024.
Nevertheless, that stability was subsequently decreased to N31.6 billion resulting from money remittances earlier than the financial institution’s liquidation on June 3, 2024.
“Following the revocation of Heritage Bank’s banking licence by the Central Bank of Nigeria on 3 June 2024 and its subsequent liquidation, the group wrote-off its receivable regarding the money held with the financial institution,” Multichoice said in a observe to the $21 million listed as a part of its working losses for the half-year beneath evaluation.
The Group reported that additional depreciation of the naira in opposition to the US greenback resulted in additional overseas alternate losses on non-quasi fairness loans (on the USD-denominated intergroup mortgage from MultiChoice Africa Holdings B.V. to MultiChoice Nigeria Restricted).
Nevertheless, regardless of the headwinds, the Group was in a position to repatriate some funds to headquarters from the Nigerian operation, although decrease than it did within the earlier yr.
“The group extracted USD65 million from Nigeria within the interval (1H FY24: USD91 million) at a mean fee of NGN1,516:USD (1H FY24: NGN794:USD), incurring extraction losses of USD1 million or ZAR20 million (1H FY24: USD28 million or ZAR518m) within the course of.
“The group held USD11 million in money in Nigeria at period-end, down from USD39 million at finish FY24, a consequence of constant deal with remitting money, the affect of translating the stability on the weaker naira and the write-off of the USD21 million receivable regarding the money held with Heritage Bank earlier than its license was revoked and the financial institution was liquidated,” it said.
Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024, the Nigeria Deposit Insurance coverage Company (NDIC) was appointed as liquidator and the Company has since commenced the cost of the insured deposits of N5 million most per depositor.
