Inactivity: Great Nigeria Insurance Begins Delisting From NGSE
Following the approval of shareholders on July 25, 2018, directors of Great Nigeria Insurance Plc, on Friday announced plans to voluntarily delist the company in accordance with the rules of the Nigerian Stock Exchange (NSE).
In a notice to the NSE, the company announced that minority shareholders who do not wish to be part of the delisted entity would be offered an exit opportunity.
Explaining the rationale, the director noted that “over the last five years, there is little or no trading activity on the shares held by the minority shareholders.
There has also been considerable fall in trading volumes over the last 12 months with an average daily volume of circa 1,200 units during the period March 2017 to March 2018.”
This, the statement by Mrs. Olajumoke Bakare, First Almond Attorneys, company secretaries, added, shows that shareholders are not benefiting from the continued listing of the company on the bourse, following which there is no exit opportunity while their investments have been locked up and are difficult to dispose of.
This, the statement by Mrs. Olajumoke Bakare, First Almond Attorneys, company secretaries, added, shows that shareholders are not benefiting from the continued listing of the company on the bourse, following which there is no exit opportunity while their investments have been locked up and are difficult to dispose of.
In the same way, it said the company is not benefitted from listing on the bourse as its shares continue to trade at a significant discount to the intrinsic value, even while the company continues to bear unnecessary cost to comply with its listing obligations on the NSE.
To exit the investment, the company urged shareholders to trade their shares on the NSE through a nominated stockbroker, or receive exit consideration from GNI Plc in exchange for transferring their shares, for which GNI is willing to pay 50 kobo per share the price at which it has traded in the last six months prior to the Annual /Extra-Ordinary General Meeting date when the resolution to delist was passed.
The offer is opened between July 25 and October 24, while submission of duly competed consideration election and acceptance form is to the Registrars- GTL Registrar Limited, Yaba, Lagos.
An escrow account for the settlement of the consideration accruing to shareholders of GNI Plc who accept the offer is to be settled via electronic transfer to the respective bank accounts of shareholders after the October 24, 2018 computation date.
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