Shareholders have kicked against the planned delisting of Afprint Nigeria Plc from the Nigerian Stock Exchange (NSE).
Shareholders, under the auspices of Renaissance Shareholders’ Association of Nigeria, at the court ordered meeting of the company held last week, identified a number of irregularities in the planned delisting process and called on the regulatory authorities to wade into the issue so as to ensure the institutionalisation of good corporate governance and protection of investors’ interest.
According to a statement by Mr. Olufemi Timothy, Chairman of the shareholders’ group, the Corporate Affairs Commission (CAC) should not register the Certified True Copy of the scheme until the issues raised at the meeting is investigated for its fairness, reasonableness, equity and justice in the interest of the investing public confidence and to prevent bad precedent.
He said, “Seven shareholders spoke at the meeting, four were against the scheme, three were for the scheme. We protested at the meeting that has representatives of the Corporate Affairs Commission in attendance, while the Securities and Exchange Commission and the Nigerian Stock Exchange were absent.“The Poll conducted was inaccurate and must be investigated.
We are against the scheme because it lacks fairness, reasonableness, due process, equity, rule of law, and did not give good representation of the minority shareholders before and during the scheme implementation. The share price for the cancellation of minority shares (N1:50) is grossly under payment and under value of the company that is worth N20 per 50k shares if given current valuation by experts.
“The scheme did not account for the three subsidiaries of the company. No financial statement of the subsdiaries were disclosed to now their value including their ssets. The Current value of Afprint Nigeria Plc’s sset on Apapa-Oshodi Express Road was not disclosed adequately but was depreciated to serve their selfish interest.
“No goodwill was accounted for in the scheme of arrangement, while the Board of Directors was to remain after the scheme to enjoy their loot. The scheme said that outstanding amount to the scheme payment account will revert to Kewalrams after 12 years (unclaimed). This is not fair and it is fraudulent to take minorities money.
“The company’s director that was unable to declare profit because of their inefficiency and mismanagement should have wound up or liquidated the company to serve the interest of all stakeholders instead of few majority holder taking the assets at give away price of N 1.50.
“If this is allowed other majority shareholders in other companies will follow suit. They will run down the company and go away with the assets at give away price. We must protect investors’ confidence and ensure good corporate governance is institutionalise in Nigeria.
The company, had last year applied to the NSE for de-listing of its shares, blaming its decision on the tough operating environment which forced it to move from the production of textiles to agricultural production.