Stock delisting: 11Plc plans to settle dissenting shareholders

11 Plc, formerly Mobil Oil Nigeria Plc, has said it will set aside sufficient funds to settle all dissenting shareholders as it pushes ahead with the plan to delist from the Nigerian Stock Exchange.

The company, in a document obtained by MarketsReporters from the NSE on Wednesday, noted that a resolution was passed at the Annual General Meeting held on October 14, 2020, in favour of the proposal to delist its 360,595,262 ordinary shares listed on the bourse.

“The purpose of delisting is to enable the company explore strategic opportunities, alliances and collaborations that can bolster earnings and/or provide synergised benefits with little or no regulatory obligations,” it said.

The oil marketing company said shareholders who disapprove the delisting could indicate their dissent through the registrar for appropriate consideration.

The document said, “The interest of dissenting shareholders shall be bought by the company for a consideration of N213.90 per ordinary share, being the highest price at which 11 Plc shares have traded, six months preceding the notice of the AGM at which the resolution to delist was deliberated, as provided by the rules of the Nigerian Stock Exchange.

“The financial advisers and the board, therefore, consider this price fair and reasonable. Following the conclusion of the delisting process, 11 Plc will become an unlisted public liability company.”

According to the company, shareholders that intend to remain members of an unlisted 11 Plc shall be free to remain and there is no obligation to receive the exit consideration.

It said, “Once the transaction is approved by both the Securities and Exchange Commission and the Nigerian Stock Exchange, the shares of the company shall be expunged from the daily official list of the Exchange.

“Furthermore, all dissenting shareholders would be settled and cease to be shareholders of 11 Plc.”

The company said the delisting would not have any impact on the existing employment contracts of its staff and the composition of its Board of Directors.

The document said, “11 Plc will be able to focus on revenue generation, consider strategic opportunities, alliances and collaborations; and tremendously shift from regulatory, administrative, and financial reporting regulations that companies listed on the Nigerian Stock Exchange must adhere to.

“Upon the expiration of the timeline to dissent (March 1, 2021), 11 Plc will set aside sufficient funds and provide evidence of funding to the Exchange, to demonstrate that it has the financial resources to settle any dissenting shareholder.”

The United States-based ExxonMobil sold its 60 per cent stake in Mobil Oil Nigeria in 2017 to NIPCO Investment Limited, a wholly owned subsidiary of Nipco Plc in 2017. It was later renamed 11Plc.