Seven-Up Bottling Company Plc has received approval from the Nigerian Stock Exchange (NSE) to delist its shares from the Exchange following the submission of an application is made to the Exchange, seeking to delist its shares and end its 32 years on the big board. The company was first listed on the Exchange in 1986.
A regulatory filing at the Stock Exchange suggests that the company which was incorporated in Nigeria in 1959 and became a publicly traded company in 1978 begun the process of delisting on 8th February 2018 similar to steps taking by its main rival, Nigerian Bottling Company (NBC) to exit the Exchange in 2011.
Seven-Up announced on 30th November that it had received an offer from Affelka S.A, it’s majority shareholder to acquire the remaining shares of minority shareholders it does not already own following mounting losses and share price decline caused by the recession and competition over the last few years. According to a statement released by the soft drinks maker, the core investor wants to take 7-Up private for restructuring and enhance its product portfolio so it can compete with its industry rivals.
On 11th January 2018, Seven-Up shareholders passed a resolution at a Court-Ordered Meeting of the company to transfer 26.8% minority shares to Affelka, increasing its holding in the firm to 100%.
Following the Court-Ordered meeting, the Exchange suspended the trading of shares of Seven-Up on 12th January, so it can determine the shareholders who will receive the Scheme Consideration following the company’s majority shareholder, Affelka S.A (“Affelka”), the buyout of the remaining shares of minority shareholders it does not already own.
In a petition submitted by 7-Up on 8th February 2018 to the Court, it sought to delist its ordinary shares from the Exchange following the transfer of shares of minority shareholders to Affelka and the payment of cash consideration to holders of Scheme Shares as agreed at the Court-Ordered meeting. The court on the same day approved the request sought by the petitioner (7-UP).