11 Plc (NSE – MOBIL) has explained the reason behind the company’s voluntary delisting from the Nigerian Stock Exchange (NSE) and the expected timeline.
At the Annual General Meeting (AGM) held on the 14th of October, 2020, a resolution was passed in favour of the proposal to delist the total of 360,595,262 ordinary shares of 11 Plc listed on the NSE.
According to the company, “the purpose of delisting is to enable the Company explore strategic opportunities, alliances and collaborations that can bolster earnings and/or provide synergized benefits with little or no regulatory obligations.”
11 Plc is offering shareholders an exit consideration of N213.90 per share which the company said the Financial Advisers and the Board consider it to be “fair and reasonable.”
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This is the highest price at which 11 Plc shares have traded, from February 2018 and in the six months preceding the notice of the AGM at which the resolution to delist was deliberated.
However, the share price is currently at N228.00 per share, having to risen to as much as N249.50 per share on 13th Jan 2021. Thus, at the consideration price of N213.90 per share, shareholders who recently purchased the share will incur loss of some sort.
11 Plc will become an Unlisted Public Liability Company (PLC) upon the conclusion of the delisting process. Shareholders that intend to remain members of an unlisted 11 Plc shall be free to remain and there is no obligation to receive the exit Consideration.
Shareholders who dissent, should complete the attached form (page 6 of the document) and forward same to Greenwich Registrars & Data Solutions Limited located at 274 Murtala Muhammed Way, Alagomeji-Yaba, within the specified period from 1 February to 31 March 20221.
The company added that all dissenting shareholders would be settled and cease to be shareholders of 11 Plc.
Once the delisting is approved by both the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE), the shares of the company shall be expunged from the daily official list of the Exchange and will no longer be available for trading on the Main Board of the NSE.
The delisted 11 Plc will continue its operations as an unlisted Public Company and the delisting will have no impact on the existing employment contracts of its staff and on the composition of the Board of Directors of the company.
The major shareholder
The major shareholder in 11 Plc is Nipco Investments Limited, which held 280,574,789 units of the company shares, representing 77.81% as at 31 December 2019.
On 31st March 2017, following the approval of the Securities and Exchange Commission (SEC) and The Nigerian Stock Exchange (NSE), NIPCO Investments Limited (NIPCO), a wholly owned subsidiary of NIPCO Plc, completed the acquisition of ExxonMobil Oil Corporation’s stake in Mobil Oil Nigeria Plc (NSE: MOBIL), in a deal worth N90 Billion.
The trade was executed on the floor of the Nigerian Stock Exchange.
NIPCO, (formerly called IPMAN Petroleum Marketing Company Limited), was incorporated as an indigenous oil and gas company operating in the downstream sector of the Nigerian oil and gas industry on 8th January 2001. NIPCO Plc is committed to meeting the needs of all stakeholders and become an integrated Oil & Gas company by venturing into the upstream sector.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
