NSE delisted six companies in 2013 — Report

No fewer than six companies were among the entities and securities delisted from the Nigerian Stock Exchange in 2013; according to data obtained from the NSE.

The companies were delisted in the space of eight months starting with the Nigerian Bag Manufacturing Company Plc on April 11, 2013.

Crusader Nigeria Plc was removed from the official trading list on May 13, 2013, followed by West African Aluminium Products Plc and Nigeria Wire Industries Plc, which were both delisted on June 3.

Three weeks later, on June 24, 2013, First City Monument Bank Plc was delisted from the banking sub-sector and went on to become a part of the new holding company, FCMB Group Plc.

FCMB Group Plc is listed on the NSE under the other financial services sub-sector of the financial services sector.

Poly Product Plc was the last company to be delisted from the NSE last year. It voluntarily exited the Exchange on December 12 due to harsh economic climate, according to the NSE.

The delisting of four other companies had not been completed by the end of the year.

The companies include Pinnacle Point Group Plc, which is in the process of liquidation, and Afrik Pharmaceutical Plc, which is being delisted by the Exchange for noncompliance with post-listing obligations.

The Tourist Company of Nigeria Plc is undergoing voluntary delisting due to Free Float deficiency, while Adswitch Plc is being voluntarily delisted due to harsh economic climate.

As for the securities, the Crusader (Nigeria) Plc Zero Coupon Convertible Bond was delisted on February 15, while up to seven Federal Government of Nigeria bonds, which were due in 2013, were delisted as well.

They are the 5.5 per cent FGN FEB 2013 bond (delisted on March 1, 2013); 15 per cent FGN MAY 2013 bond; 16 per cent FGN JUN 2013 bond (delisted on July 1) and 12.74 per cent FGN OCT 2013 bond (delisted on November 1).

While the 3.75 per cent +NTB RATE FGN SEP 2013 bond was delisted on October 2, the 10.50 per cent FGN NOV 2013 bond and the 10.98 per cent FGN NOV 2013 bond were both delisted on November 2.

However, only Computer Warehouse Group Plc and Infinity Trust Mortgage Bank Plc were listed in the course of the year.

Recently, the Chief Executive Officer, NSE, Mr. Oscar Onyema, explained that the Exchange had evolved processes to ensure that companies did not delist unless they met certain requirements, including providing funds to pay off shareholders who preferred to sell their shares to holding the stock of unlisted companies.

However, the President, Renaissance Shareholders Association of Nigeria, Mr. Timothy Olufemi, said minority shareholders have had some terrible experience with companies that were delisted.

For instance, he said, there had been times when what the shareholders got paid for their shares was not in line with current market prices.

“I have had cause to write a petition to the Securities and Exchange Commission concerning a delisting this January,” he said.

Olufemi stressed that it was unfair for companies to delist after “making a lot of money from shareholders and from the capital market,” he said.

 

 

[Punch]