By Modupe Gbadeyanka
One of the cement manufacturing companies in Nigeria, Ashaka Cement, has announced its intention to go for a voluntarily delisting from the Nigerian Stock Exchange (NSE).
This follows the firm’s Free Float currently standing at 15.03 percent, which is significantly below the NSE’s minimum Free Float of 20 percent.
At the moment, Lafarge controls 84.97 percent of Ashaka Cement.
This follows the initial acquisition of 1,312,444,260 shares of Ashaka Cement Plc from Lafarge SA and then an additional 534,144,592 shares of Ashaka Cement, increasing its equity stake to 82.46 percent, leaving Ashaka Cement with only 15.03 percent.
This forced the Board of Directors of Ashaka Cement Plc to opt for a voluntarily delisting of the company from the stock market.
The board explained that “neither the company nor any shareholders are benefiting from the continued listing as shareholders are not getting any exit opportunity and their investments have been locked up and they find it difficult to dispose of their shareholding.”
It further said, “Moreover, the company is bearing unnecessary cost in complying with its listing obligations.”
However, the board noted that if a shareholder desires to remain a shareholder of Ashaka Cement, such shareholder shall be free to do so and there is no obligation to trade their shares or receive the exit consideration.
It explained the delisting is just to provide shield to the company from any enforcement action that the NSE may effect and are also providing an exit consideration to minority shareholders who do not wish to remain in an unlisted company.
The board said minority shareholders of Ashaka Cement may exit prior to the delisting by trading their shares on NSE or receive 57 shares of Lafarge Africa Plc in exchange for 202 Ashaka Cement shares held as at the date of the special resolution approving the voluntary delisting.
In addition, a cash consideration of N2 per share will be paid to every shareholder exchanging their Ashaka Cement shares for Lafarge Africa shares.
Meanwhile, an Extraordinary General Meeting (EGM) to approve the voluntary delisting has been fixed for Monday, December 19, 2016.
