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Five firms get NSE’s approval to restructure operations

By BusinessNews Staff on October 23, 2014

Five companies have obtained the approval of the Nigerian Stock Exchange (NSE) to restructure their operations thereby escaping being delisted. The companies are among those approved by the Council of the NSE for delisting. However, they have been given time to restructure their operations. The companies are: Alumnium Manufacturing Company of Nigeria Plc; MTI Plc; Nigerian German Chemical Plc; Beco Petroleum Product Plc, and Unic Insurance Plc.
While the five companies have the opportunity to restructure their operations and remain listed, the NSE is to start the process of delisting nine companies. They are: Investment and Allied Insurance Plc, Pinnacle Point Group Plc, Afroil Plc, West African Glass Industry Plc, Nigeria Wire & Cable Plc, Starcomms Plc, Mtech Plc, Big Treat Plc and Jos International Breweries Plc.

According to the NSE, out of the 24 companies served notice of intention to delist, the nine companies failed to take appropriate steps to regularise their listing status after the three months statutory notice.
The exchange had last June disclosed its intention to delist 24 companies for their non-compliance with provisions of the listings rules of and pursuant to Clause 15 of the General Undertaking.
The notice provided a three-month window for each of the affected listed companies to regularise its listing status with the exchange. However, while only one of the affected companies fully regularised its listing status, 14 companies took some steps to regularise their listing status.
The exchange assured that it would continue to engage the 14 companies that have taken steps towards regularising their listing status with a view to bringing them into compliance with their post listing obligations.
Although some shareholders have called for caution on the side of exchange, the Chief Executive Officer of NSE, Mr. Oscar Onyema explained recently that the delisting is not intended to emasculate investments of shareholders.
According to him, the NSE is only enforcing listing standards in the market.
“In delisting companies, we have listing standards and we are simply enforcing the standards and the delisting process shows that. What we have done is to indicate companies that are going to be delisted and not that we have delisted them. We put them on notice that we are very serious about it. I want to note that a number of shareholders said that we are not protecting their interest in reality we are protecting them. I am making it very clear that you cannot be a listed company and stayed for two or three years without providing your financial statement. On what basis are they protesting?” Onyema said.
Japanese Air Conditioner Manufacturer to Explore Nigeria Market
Japanese multinational air conditioner manufacturer, Daikin Industries Limited, with global sales volume of about $18 billion annually has entered into the growing Nigeria’s market.
The company, which has been in Africa for over 40 years, was attracted by Nigeria’s economic potentials as it partnered with Panaserv Nigeria as its distribution partner in the country.
In Africa alone, the company has annual sales volume of about $100 million for its cooling systems. Over time Nigeria’s demand for products including air conditioners has been rising due to growth of the middle class and this is perhaps the target of Daikin in spite of the competition in the market.
For quick penetration into the market, Daikin in partnership with its partner, Panaserv, recently unveiled in Lagos range of split air conditioners with built-in protection against power supply fluctuations and blackout.
Speaking at the exhibition of the latest range of products, Hiroshi Fujioka, president of the company for 38 Middle East and Africa, said, the 2014 models of air conditioners have been developed in order to meet Africa’s most challenging needs for the best air conditioning.
He said, the company offers efficient operation on its equipment for lower electricity consumption and rapid cooling for the room. “Daikin belief is that Africa deserves the best. Turning houses into homes is our core mission”, he said.
Head of sales for Africa, Mohammed Miraj Mohammed Abbas said the product, which he believes will compete effectively in the Nigerian market comes with an inverter based system.
Abbas further said that the air conditioner which is affordable by consumers comes with very low noise and it is eco-friendly.
In his speech, promoter, Panaserv Nigeria Limited, Suraj Rupani said the company will promote the lighter residential air conditioners in Nigeria market catering to the dealers, department stores, whole sale markets and retailers.
Daikin Industries Limited which operates in several other countries was founded in Japan in October 25, 1924.