By Dipo Olowookere
Shares of 11 Plc (formerly Mobil Oil Nigeria) would be listed on the trading platform of the NASD over-the-counter (OTC) Exchange after being delisted on the Nigerian Stock Exchange (NSE), the company has confirmed.
The energy company is planning to leave the exchange after decades and one of the reasons is because of the tough listing requirements of the NSE.
At the Annual General Meeting (AGM) of the firm held on October 14, 2020, the shareholders had approved the delisting of the organisation from the exchange.
But for those who opposed the action, they were offered N213.90 per share, being the highest price the company’s stocks have traded six months before the notice of the AGM, where the decision to leave the NSE was approved by investors.
Some days ago, the management of Mobil issued a statement to explain the reason for the action, but in some sections of the media (Business Post not included), it was reported that the delisting was to make the firm private and evict the minority investors.
Mobil has again released another statement to refute this, emphasising that after delisting from the NSE, its equities would still be tradable on the NASD.
“The delisting of 11 Plc’s shares from the NSE is not meant to make the company private. It is only a cessation of trading of the company’s shares on the NSE platform. Hence, there is no forceful acquisition of shares from minority shareholders.
“The company’s shares will be listed on the NASD OTC, thus still making its shares tradable. Shareholders will have a choice of selling their shares now at the price indicated by the company or at the NSE platform price before the delisting cut-off date or to sell on the NASD platform after delisting or to hold on to their shares and continue to receive their dividend.
“The company could choose to return to the NSE platform sometime in the future. The minority shareholders have nothing to fear or worry about in connection with the delisting,” a part of the new statement explained.
The statement further said, “Since the delisting is not intended to make the company private, and there was no dissent at the AGM in which the special resolution was passed, the unit price for the delisting was not in issue.
“It is pertinent to note that a the time of the AGM, the share price of 11 Plc shares was N186.90 but the delisting price was put at N213.90 being the highest price the stock has traded in the six months preceding the AGM. The fact that the price got higher than now cannot override the resolution.
“In any case, shareholders who want to sell but do not want to sell at the proposed price can also sell at the NSE platform before the delisting date.
“Minority shareholders are not bound to sell all their shares but may decide to keep their shares (which will still be freely tradable on the NASD OTC platform) in view of the company’s track record and dividend payouts.”
