In a significant shift in Nigeria’s financial landscape, Union Bank, Oando, and five other major companies have decided to delist from the Nigerian Exchange Limited (NGX) in 2023. This move has sparked discussions about the motivations behind such decisions and their potential impact on the Nigerian capital market.
Union Bank Bids Farewell After 52 Years
Union Bank of Nigeria Plc, a stalwart with a 52-year presence on the Nigerian stock market, has declared its decision to delist from the NGX. The move follows the acquisition of the majority shareholding by Titan Trust Bank Limited. Titan Trust Bank Limited aims to secure a 100% ownership stake in Union Bank of Nigeria, offering N7.70 per share for the remaining shares.
GSK Cites Challenging Economic Conditions
GlaxoSmithKline (GSK) UK Group, a prominent British pharmaceutical company, has announced its decision to conclude its activities in Nigeria and withdraw from the NGX. With a presence in Nigeria since 1971, GSK attributes its departure to challenging economic conditions in the country. The company plans to discontinue its operations in Nigeria but transition responsibilities to a third-party entity.
Oando Contemplates Voluntary Delisting
Oando Plc’s board is contemplating the voluntary delisting of its shares from the NGX. This potential move is contingent on the approval of ongoing initiatives to acquire the 42.63% minority shares from Ocean and Oil Development Partners Limited (OODP). The company aims to re-register as a private entity following the delisting.
PZ Cussons Proposes Buyout of Minority Shareholders
PZ Cussons Nigeria Limited, along with its parent company, PZ Cussons (Holdings) Limited, is set to withdraw from the NGX. The parent company proposes a buyout of minority shareholders at a price of N21 per share. The intention is to procure all outstanding shares from minority shareholders using a scheme of arrangement.
Ardova Plc Concludes 53-Year Listing
Ardova Plc, a prominent energy company, has concluded its 53-year listing on the NGX in accordance with an approved Scheme of Arrangement. The delisting, endorsed by the Securities and Exchange Commission (SEC) and sanctioned by the court, marks the end of its listing that began with African Petroleum’s admission to the Nigerian stock market.
Capital Hotels Pursues Strategic Opportunities
Capital Hotels Plc has officially announced the removal of its shares from the primary board of the NGX. The decision to delist is motivated by a desire to actively pursue strategic opportunities. The company emphasizes potential benefits, including enhanced performance, cost reduction, and increased competitiveness within its industry.
Coronation Insurance Plans Withdrawal
Coronation Insurance Plc also intends to withdraw from the NGX, prompted by an acquisition proposal from Coronation Capital (Mauritius) Limited. The offer entails the acquisition of shares at a rate of 65 kobo per share, contingent upon obtaining regulatory approval.
The reasons for delisting companies from the NGX vary, influenced by factors such as escaping regulatory constraints and addressing financial difficulties. As these companies redefine their financial trajectories, the focus remains on ensuring that Nigeria’s stock exchange remains an attractive and competitive marketplace for issuers and investors.
