Court sanctions Afprintâ€™s scheme for delisting from NSE
Category: Capital Market
Plans by the owners of Afprint Nigeria Plc to delist the company‘s stock from the official list of the Nigerian Stock Exchange have been sanctioned by the Federal High Court in Lagos.
The company‘s shareholders had earlier approved the delistment through a resolution passed at a court ordered meeting, with respect to the scheme of arrangement. A statement from the company on Tuesday, said the court granted the request presented by the company‘s board on behalf of the investors on February 9, 2010 and approved the scheme of arrangement dated December 3, 2009.
The order of the court sanctioning the scheme of arrangement is one of the many statutory requirements to enable the company meet its obligation to the minority shareholders of the company. In line with the Companies and Allied Matters Act 1990, the sanction of the Federal High Court in respect of the company, is required to be filed with the Corporate Affairs Commission, the Nigerian Stock Exchange and Securities and Exchange Commission, for the purpose of records.
The Deputy Managing Director, Afprint Nigeria Plc, Mr. Victor Eburajolo had earlier explained that the management intends to follow the delisting procedure as contained in the relevant sections of the Companies and Allied Matters Act 1990. Eburajolo also said that the required funds had already been paid into an escrow bank account in the United Bank for Africa, while the certified true copy of the court sanction has been filed with the CAC and NSE as regards the scheme of arrangement.
He, added that with the level of compliance thus far, the shareholders are likely to receive their scheme consideration warrants sooner than expected. Eburajolo, thanked the shareholders for their patience and assured them that the consideration warrants will be sent as soon as all other necessary approvals are obtained.
Under the scheme, holders of the scheme‘s shares and those on the register of members of Afprint as at the terminal date shall be entitled to receive N1.50 for every 50k share held , as terminal exist offer. The scheme‘s offer price of N1.50 is 74.4 per cent premium over the technical suspension price of 85k. According to the company, it was done to ensure that shareholders does not record any loss in capital value.
The arrangement means the cancellation of the scheme shares by the delisting of Afprint shares from the NSE and replacing it with new Afprint shares in the holding company, Kewalram Chanrai Group.
Meanwhile, the Independent Shareholders Association of Nigeria and the Progressive Shareholders Association of Nigeria, have separately endorsed the scheme of arrangement. The National Coordinator of ISAN, Chief Sunny Nwosu, said that contrary to other opinions, Afprint Nigeria Plc was only reacting to inherent economic problems especially in the real sector.