ASHAKACEM to delist from stock exchange
The Board of Directors of AshakaCem Plc has resolved to delist the company from the Nigerian Stock Exchange (NSE).
The resolution was made at its meeting held November 16, 2016.
The company, in a statement it issued, said that the resolution would be presented to shareholders for consideration at an Extraordinary General Meeting (EGM) scheduled to hold December 19, 2016.
At the conclusion of the Mandatory Tender Offer (MTO) in 2015, AshakaCem’s free float fell to 17.54%.
It further reduced to 15.03% at the conclusion of the Voluntary Tender Offer (VTO) in September, 2016.
Hence, AshakaCem was unable to meet the rule of the NSE requiring every publicly listed entity to have a “Free Float” (i.e tradable shares) of not less than 20% on the Exchange.
Through the voluntary delisting of AshakaCem, the directors of the company would be shielding the company from any enforcement action that the Exchange may effect, for example, by way of a regulatory delisting, in light of the outstanding free float deficiency.
With the voluntary delisting process, the company would be providing an opportunity to minority shareholderswho did not wish to be members of an unlisted company-to exit the company and, therefore, be shielded from being members of an unlisted company upon conclusion of the EGM.
Shareholders of AshakaCem may exit the company prior to the delisting by either, trading their shares on the floor of the Nigerian Stock Exchange, through their nominated stockbroker or accept exit terms as were offered for the MTO and the VTO i.e 202 shares of AshakaCem for 57 shares of Lafarge Africa plus a cash consideration of N2 per every AshakaCem share.
In line with regulation, shareholders would have 90 days period post the EGM to exercise these options.
Under the proposed delisting and settlement of consideration, minority shareholders in AshakaCem would be offered benefits, including revenue diversification by geography as a result of Lafarge Africa’s operations in Nigeria, South Africa and Ghana.