By Nkiruka Nnorom

ASHAKA Cement Plc yesterday disclosed plans to voluntarily delist from the Nigerian Stock Exchange, NSE, following deficiency in the company’s free float.

Companies quoted on the Main Board of the NSE are expected to maintain free float requirement of 20 per cent to remain listed as part of post-listing requirements of the Exchange. Free float or public float is the percentage of issued share of a company that is expected to be offered to the public ( its tradeable shares)

The company said in a statement that it has been unable to meet the requirement due to mandatory Tender Offer, MTO, it took in 2015, which reduced its free float to 17.54 per cent, and further reduced to 15.03 per cent at the end of the Voluntary Tender Offer, VTO, in September, 2016.

It explained that the decision was taken in order to protect the company from any enforcement action that the NSE might take in future, especially initiating regulatory delisting against the company.

“Furthermore, through the voluntary delisting process, the company will be providing an opportunity to minority shareholders, who do not wish to be members of of an unlisted company, to exit the company and therefore be shielded from being members of an unlisted entity,” the statement said.

According to the company, an Extra-ordinary General Meeting, EGM, has been scheduled where shareholders would approve the move.

It further stated that,” Upon conclusion of the EGM, shareholders of Ashaka Cem may exit the company prior to delisting by either trading their shares on the floor of the Nigerian Stock Exchange or accept an exit terms as were offered for the MTO and the VTO that is 202 shares of Ashakacem for 57 shares of Lafarge Africa plus a cash consideration of N2 per every Ashakacem share.”

Necessary regulations

“In line with necessary regulations, shareholders will have up to 90 day period post EGM to exercise any of the options, the company noted.
Under the proposed delisting and settlement of consideration, minority shareholders will be offered benefits, including revenue diversification by geography as a result of Lafarge Africa’s operation in Nigeria, South Africa and Ghana. This is in addition to revenue diversification by plant location due to wide spread operations across the North East, South East and South West regions in Nigeria.

Meanwhile, the equities market recorded loss for the 5th consecutive session at the end of trading yesterday as investors lost N18.4 billion of their investment.

At the close of trading session, the market capitalisation of all listed equities fell to N8.7 trillion from N8.813 trillion, representing 0.21 per cent decline, while the All Share Index, ASI, fell by the same margin to close at 25,599.79 points, bringing Year-To-Date loss to 10.6 per cent..

Sell pressure on Nigerian Breweries Plc, (-0.6 per cent), Forte Oil Plc (-5.0 per cent), Total Oil Nigeria Plc (-4.8 per cent) and Guaranty Trust Bank plc (-0.7 per cent) dragged market performance as investors lost N18.4bn bringing market capitalization to N8.7tn. Activity stayed mixed as volume traded rose 10.9 per cent to 161.6 million while value traded declined 12.2 per cent to N1.2 billion. respectively.