BY WILLIAM JIMOH

Shareholders of Poly Products Nigeria Plc have unanimously agreed that the company should be delisted from the daily official list of the Nigerian Stock Exchange, NSE, and embark on a corporate restructuring.

Speaking at its Annual General Meeting and Proposed Scheme of Arrangement in Lagos, Mr Michael-Murray Bruce, Chairman of the company said this was necessitated having sustained loss of value over the past several years, adding that the company is no longer sustainable in its current form. As a result, the directors had come to conclude that the proper way forward is to seek entirely new ways to take part in Nigeria’s future, and the best manner of accomplishing this would be as a private enterprise, he said.

The proposed scheme of arrangement formally expresses the interest of the majority shareholder group in acquiring the minority shareholding of the company with a view to delisting from the NSE and become a private company.

Mr. Murray said that the majority shareholders group, led by U-Chem Inc, has a 68.74 per cent stake in the company. The proposed formally states the interest of U-Chem Inc to initiate a corporate and financial restructuring of Poly Products Nigeria Plc.

However, as an essential first step to this proposed restructuring, U-Chem Inc proposes to acquire the entire minority shareholding Poly Products Nigeria Plc, amounting to 77,916,590 ordinary shares of 50 Kobo each, representing 31.26 percent of the company’s issued share capital, subsequent to which the company will convert to a privately held company, he said.

Murray noted that, “there are several direct cost associated with being listed on the NSE. With a very modest market capitalisation of N252 million and turnover of less than N3 billion, we believe that it is not possible to deliver value to almost 10,500 shareholders.”

Reacting to this, Chairman, Nigerian Independent Shareholders Association, Sir, Timothy Adesiyan said, “We sympathize with the Poly Product as a company, because we know what it went through. Going out of the capital market is not leaving the country, we are still together.

“Our believe is that you have been fair to us, that is the reason why you don’t just leave without making the necessary payment. We have up to 58 companies that are delisted just like you, of which we did not have our money back but the story is different with you.”

Also speaking, National Coordinator Nigerian Independent Shareholders Association, Sir Sunny Nwosu said the company with all indication had done what was right, adding that it is because the Securities and Exchange Commission, SEC, is not doing enough, that is why the professionals are cheating the shareholders.

“When things get better, remember the shareholders, do your best to ensure that your staff after this process are not left to be jobless? And when the country’s economy improved and you returned to the market we will still be very happy to do business with you,” Nwosu added.

Meanwhile, the company’s turnover increased from N2.2billion to N2.6billion at the end 2012 financial year. This showed a 14 per cent increase. Profit after tax increased from N50.7 million in 2011 to N55.1 million in 2012.