Friday, December 08, 2017 / 4:38PM / Proshare Research
share price of 7UP
today moved up by 4.99% to close at N101.97k. The recent announcement by the
majority shareholder of 7UP Plc, Affelka S.A.,
to acquire 171,542,574
ordinary shares of 50.00 kobo each, representing 26.78% of the company's total
share outstanding 640,590,363 ordinary shares is the key driver of the price
Graph 1: Share Price Movement Jan 3rd
2017 to Dec 8th 2017
Source: NSE, Proshare Research
S.A is offering N112.70 per share for the outstanding shares and this consideration
represents a premium of 16.04% on the last traded share price of
N97.12 of the company on December 7th, 2017.
As such, it is expected that there will be some
bids which may lead to share price appreciation as traders/investors take
advantage of the discount in share price.
The proposed acquisition is
subject to approvals from shareholders and regulators as a court
ordered meeting has been scheduled for January 11, 2018 and the scheme
of arrangement on the acquisition also released to the market.