11 Plc (NSE: MOBIL) has opened an escrow account to allow for payment to shareholders who have accepted to exit the company as it sets to delist from the Nigerian Stock Exchange (NSE).
The escrow account was opened with Greenwich Registrars and Data Solutions Limited with sufficient funds provided for shareholders who have accepted the Exit Consideration of N213.9 per share.
The company disclosed this in a public notice issued on the NSE on Thursday. It stated that The Exchange has approved the voluntary delisting of 11 Plc subject to the company providing evidence that it has opened an “escrow account in the Registrars name and evidence that shareholders who have accepted to exit have been paid.”
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.
11 PLC stated that the purpose of the delisting is to provide “the company with the opportunity to strategize for better performance, minimize costs, and stay competitive within its industry.”
The exit consideration of N213.90 per share 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 and passed.
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The share price has closed flat at N228.00 per share since 4th February 2021, having risen to as much as N249.50 per share on 13th January 2021.
Thus, at the exit consideration price of N213.90 per share, shareholders who recently purchased the share and opted to exit will incur a loss of some sort.
According to 11 Plc, the consideration accruing to shareholders of the company who elected to accept the exit consideration has been completed as of 15th March 2021. The cash consideration will be settled by a way of electronic transfer to the respective bank accounts of shareholders and it is expected to be completed on or before 16th April 2021.
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 according to the company.
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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.
About 11 Plc
11 PLC, formerly Mobil Oil Nigeria Plc, is a Nigeria-based petroleum products marketer. The company has two segments: petroleum products marketing and the property business.
The petroleum products marketing segment generates revenue from the sale of white products and lubricants. The property business segment generates income from the rent paid on its investment properties and service stations, and income from recently acquired Lagos Continental Hotels.
The company’s petroleum products include Petrol, diesel, aviation fuel, kerosene and lubricants. Petrol, diesel and kerosene are sold through its service stations while lubricants are sold through both the service station and the company’s distributors. Aviation fuel is sold at Murtala Mohammed Airport, Lagos. The company has approximately 250 retail outlets located across the country. The company operates a Lube Oil Blending Plant (LOBP) in a state of the art facility located in Apapa, Lagos State.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
