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IHS shareholders back delisting from NSE

By on January 26, 2014

Shareholders of IHS Nigeria Plc, a telecom infrastructure service provider company, have supported the decision of the company to exit from the Nigerian Stock Exchange, NSE, daily official list.

This was following agreement reached with the investors and company that each shareholder would receives N4.35 while embarking on a corporate restructuring.

Speaking on behalf of other investors at the company’s Court Order Meeting held in Lagos, Mr. Williams Adebayo, President, Greenwich Shareholders Association, noted that the shareholders accepted the proposal considering the reasons by the chairman to allow for an optimal future expansion plan and capital requirement.

According to Adebayo, “Prior to this meeting, the shareholders have said that the amount to be given which is N3.70 per share is ridiculously low and after serious bargaining with the company’s Board of Directors, we reached a conclusion that N4.35 per share is an ideal price and that gave the company a chance to delist and move forward as a going concern with vibrant funds needed to do business.”

Earlier in his speech, the company’s chairman, Mallam Bashir El-Rufai, stated that it became imperative for the company to delist from the NSE daily official list following the limited number of shareholders and extremely low level of liquidity in the company’s stock which has impacted significantly the feasibility of raising the required capital on the NSE.

As a result of this, “The Board of Directors has had extensive discussion around the optimal corporate structure for the company in light of the shift in strategic focus, future expansion plans and capital requirement.

“Pursuant to these discussions, the Board of Directors received a proposal from IHS Holding to continue to support the company’s growth and expansion, the restructuring of the company from a public listed entity to a private unlisted entity.”

 

 

 

[Vanguard]