NBC board approves delisting plan, increases cash payment to N47 per share
Category: Capital Market
JUNE 10 2011, MOSES EBOSELE
NIGERIAN Bottling Company (NBC), Plc has secured the approval of its board to delist the shares of the company from the daily official list of Nigerian Stock Exchange (NSE).
At the end of its meeting held on June 8,2011, the board also increased price to be paid per cancelled share from N43 to N47 per share.
The company explained yesterday that apart from the increase in price, all terms of the transaction announced on December 14, 2010 remain the same.
According to the company, the price per cancelled share now represents a premium of 57 per cent to the closing price on December 13, 2010 and a premium of 50 per cent to the 30-day average share price prior to December 13, 2010.
NBC Plc in a statement, yesterday, explained that the transaction remains subject to the approval by the shareholders of the Company at a meeting convened by order and sanction of the Federal High Court.
The statement added that in line with the provisions of Section 539 of the Companies and Allied Matters Act, an application will be filed before the court requesting an order summoning a meeting of the shareholders of the Company for the purpose of considering and, if thought fit, approving the transaction.
It explained that if the court order is granted, then the notice for the court ordered meeting shall be published in widely circulated national newspapers and the transaction document will be dispatched to shareholders along with the notices of the Court ordered meeting.
The company said Renaissance Capital is Financial Advisor and Stock Broker to the Transaction and Olaniwun Ajayi LP are the Solicitors to the Transaction, while KPMG Professional Services is Financial Advisor to the board of directors of NBC.
Part of the statement read “following its initial announcement on December 14, 2010, the board of directors of Nigerian Bottling Company Plc June 8, 2011 resolved to approve a scheme of arrangement between the Company and its shareholders pursuant to Section 539 of the Companies and Allied Matters Act.
“The proposed scheme of arrangement is an integral part of an extensive plan by the company to invest N45 billion in Nigeria towards modernising its infrastructure, enhancing its supply chain capabilities, strengthening its commercial platform and an expansion of its corporate social responsibility program.
“The company remains committed to the socio-economic development of Nigeria, as evidenced by its significant investment plan, and firmly considers that such investment is required to ensure the sustainability of the Company’s business.
“The transaction will involve the cancellation of part of the paid up share capital of NBC and the subsequent delisting of the Company from the Daily Official List of the Nigerian Stock Exchange (NSE).
“The price to be paid per cancelled share has been increased from N43, the initial price announced on the December 13, 2010, to N47.