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NSE Delists Afrik Pharmaceuticals, African Paints Nigeria

By Dipo Olowookere

Two companies trading on the floor of the Nigerian Stock Exchange (NSE); Afrik Pharmaceuticals Plc and African Paints (Nigeria) Plc have been delisted from the Daily Official List of the NSE.

The de-registration of the firms were approved by the Quotations Committee of the National Council of the NSE (QCN) on Friday, March 9, 2018.

However, the delisting took effect from April 5, 2018, in pursuant to Clause 15 of the General Undertaking, Appendix iii of the Rule Book of The Exchange, 2015 (Issuers?Rules).

A statement issued by the NSE said the affected companies have been notified of this action as well as members of the public, shareholders and investors in the Nigerian capital market.

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The shares of African Paints were last traded on the NSE on May 26, 2017, according to data on the exchange and 500,000 units were traded on that day.

However, its last ex-div was on January 16, 2001, same date as the last ex-scrip.

For the shares of Afrik Pharmaceuticals, they were last traded on September 16, 2015 when 1,000 units were sold 50 kobo each.

The last ex-div date of the firm was June 11, 2003 for a five kobo dividend paid on July 3, 2003, while the last ex-scrip date was September 10, 2001.

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It was gathered that before both firms were delisted, the management of NSE met with executives of the companies, where they were informed of dangers of not adhering to the listing rules.

But the NSE said the affected firms did not make amends or even take steps towards a delisting notice issued on October 13, 2016.

The stock market regulator said it later notified the companies of its intention to delist them from the Daily Official List for non-compliance with provisions of the Post Listing Rules on April 11, and via two newspaper publications on April 20, 2017.

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“The Exchange in the publication granted an additional three months to the listed companies above (to) cure their compliance deficiencies,” which they still failed to utilize.

These, notwithstanding, the NSE said it continued to engage the companies but that they did not take to the requisite steps to become compliant and that having exhausted all options available, it has proceeded with the delisting of these entities from the Daily Official List.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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