BY PETER EGWUATU

Chartered Institute of Stock Brokers (CIS) has condemned the proposed plan to delist Nigerian Bottling Company (NBC) from the Nigerian Stock Exchange (NSE), saying it is inimical to the growth of the Nigerian capital market and the economy in general.

The CIS President, Michael M. Itegboje at a press briefing in Lagos, weekend, totally condemned the move by the majority shareholders of NBC, Coca-Cola Hellenic Bottling Company S.A. to outbuy the minority shareholders that had helped to sustain the company over the years.

According to him, “ it is not a good omen at this point in time that the stock market is picking up with shareholders expectations to reap from where they have sowed over the years, for the Greek owner of this company to now want to dump Nigerian shareholders with flimsy and unacceptable excuses that they are bringing in $14 billion”.

Continuing, he said, “ where were they when the share price of NBC at its high price, now that the price is low they now want to dump Nigerian shareholders in order to become a wholly owned subsidiary as Coca-Cola Hellenic Bottling Company S.A., NBC would pay N43 per share as consideration to the minority shareholders. Currently, the price of NBC is N40.89 as at February 22, 2011. What is the gain for the Nigerian shareholders”?

“As a strategic move, a company may delist in order to benefit its shareholders if its shares are trading below intrinsic value. The main purpose would be to reward the shareholders with substantial returns over the short term. In the case of NBC, the Nigerian shareholders are cleverly excluded leaving the Greek owners to effectively regain the full control and ownership of the company”.

He queried the rationale for their delisting, asking if Coca-Cola Hellenic Bottling Company S.A. is delisting from other stock exchanges in the remaining 27 countries? If not, why is it limiting its delisting move to Nigeria. Coca-Cola Hellenic Bottling Company S.A. currently operates in 28 countries as of today.

Itegboje, has called on the Securities and Exchange Commission (SEC), shareholders and Nigerian government to disapprove the plans by refusing to approve all necessary documents

According to him, “on moral and economic conditions, it will be inimical if the NBC is allowed to delist at this moment as this will send wrong signals to other companies who are already eyeing to list on the Nigerian market”.