The Board of Directors of AshakaCem Plc has proposed to the shareholders of the company, a voluntary delisting of the company from the floor of the Nigerian Stock Exchange (NSE) at its meeting held yesterday.
In a statement obtained from NSE’s website, the firm noted that the resolution would be presented for consideration by shareholders of AshakaCem at the Extraordinary General Meeting (EGM) scheduled to hold on December, 2016. The company noted that at the conclusion of the Mandatory Tender Offer (MTO) in 2015, Ashaka- Cem’s free float fell to 17.54 per cent.
“This further reduced to 15.03 per cent at the conclusion of the voluntary Tender Offer (VTO) in September, 2016.
Hence, AshakaCem has been unable to meet the NSE Rule requirement for every publicly listed entity to have a ‘Free Float’ (i.e tradable shares) of not less than 20 per cent on the Exchange. The company said: “Through the voluntary delisting of AshakaCem, the directors of the company will be shielding the company from any enforcement action that the Exchange may effect, for example by way of a regulatory delisting in light of the outstanding free float deficiency.
“Furthermore, through the voluntary delisting process, the company will be providing an opportunity to minority shareholders who do not wish to be members of an unlisted company to exit the company and therefore be shielded from being members of an unlisted company