By Dipo Olowookere
The shares of Union Diagnostic and Clinical Services Plc have been placed on a full-suspension by the Nigerian Stock Exchange (NSE).
This means holders of the company’s equities would not be able to trade them on the floor of the exchange during the time of the embargo.
The suspension became effective on Friday, March 5, 2021, according to a circular issued by the management of the bourse to stockbrokers.
A copy of the notice sighted by Business Post explained that the action was taken to prevent trading in the shares of the company beyond the effective date of the deal between Union Diagnostic and Cedar Advisory Partners Limited and for determining the shareholders whose names are in the register of members on the effective date.
Recall that Cedar is acquiring the 39.62 per cent stake of minority shareholders in Union Diagnostic, which is about 1,407,855,051 ordinary shares at 35 kobo each.
The investment firm with a niche in the healthcare business already controls a 20.04 per cent equity stake in Union Diagnostic, about 711,916,612 ordinary shares.
With this deal, Cedar will become the majority shareholder in Union Diagnostic with 59.66 per cent.
Recently, the minority shareholders of the company accepted the N492.75 million offered by Cedar for their shares, making the exit of the organisation on the NSE closer.
In order to make the journey out of the exchange smoother, trading in the shares of the company was suspended.
“Dealing members are hereby notified that trading in the shares of Union Diagnostic and Clinical Services Plc was suspended [on] Friday, March 5, 2021.
“The suspension is necessary to prevent trading in the shares of the company beyond the effective date of the scheme of arrangement between Union Diagnostic and Cedar Advisory Partners Limited and for determining the shareholders whose names are in the register of members on the effective date.
“The terms of the scheme include the transfer of the entire issued and fully paid-up ordinary shares of 50 Kobo each in Union Diagnostic held by the scheme shareholders to Cedar Advisory Partners Limited. The company’s shareholders approved the scheme at a court-ordered meeting held on January 25, 2021.
“Please also note that the scheme will result in the delisting of the company from the daily official list of the exchange,” the circular read.
Adedapo Adesanya