Delisting: NBC increases exit price
BY MICHAEL EBOH
Following its planned delisting from the Nigerian Stock Exchange (NSE), Nigerian Bottling Company Plc has increased its exit price to N47 per share, from N43 per share earlier proposed last year.
The company further announced its readiness to file an application in the Court requesting an order summoning a meeting of the shareholders of the Company to deliberate on the planned delisting.
The company in a notice to the notice to the investing community, released by the NSE, Wednesday, said, “The Transaction will involve the cancellation of part of the paid up share capital of NBC and the subsequent delisting of the Company from the Daily Official List of the NSE. The price to be paid per cancelled share has been increased from N43, the initial price announced on the 13th December 2010, to N47.
“All terms of the Transaction announced on the 14th of December 2010, other than price, remain the same. The price per cancelled share now represents a premium of 57 per cent to the closing price on the 13th of December 2010 and a premium of 50 per cent to the 30-day average share price prior to 13th of December 2010.
“The Transaction remains subject to (i) the approval by the shareholders of the Company at a meeting convened by order of the Federal High Court, and (ii) the sanction of the Federal High Court.”
The main reason why the company wants to delist is that it wants the company to “become a wholly owned subsidiary of its majority shareholder, Coca-Cola Hellenic Bottling Company S.A.”
Stakeholders in the capital market has kicked against the planned delisting, calling on the authorities and shareholders of the company to reject the delisting.
According to them, the main reason why the company wants to delist is because of the fact that it is seeking become a wholly owned subsidiary of its majority shareholder, Coca-Cola Hellenic Bottling Company S.A., as against its claims that the delisting is an integral part of an extensive plan by the Company to invest N45 billion in Nigeria towards modernising its infrastructure, enhancing its supply chain capabilities, strengthening its commercial platform and an expansion of its corporate social responsibility program.