Delisting: Minority shareholders not forced to sell shares, says 11Plc

11 Plc, formerly Mobil Oil Nigeria Plc, has said there is no forceful acquisition of shares from minority shareholders ahead of its planned delisting from the Nigerian Stock Exchange.

The oil marketing company said this on Friday in a statement clarifying issues raised on the delisting.

It said shareholders at its last Annual General Meeting held on Oct. 14, 2020 unanimously approved the delisting of the company’s shares from the NSE.

The company, in the statement signed by its Company Secretary, Chris-Olumayowa Meseko, said the success of the special resolution was due to the acceptable justifications for the delisting.

It said, “The delisting of 11 Plc’s shares from NSE is not meant to make the company private. It is only a cessation of trading of the company’s shares on the NSE platform.

“Hence, there is no forceful acquisition of shares from the minority shareholders. The company’s shares will be listed on the NASD OTC, thus still making its shares tradable.

The statement said shareholders would have a choice of selling their shares now at the price indicated by the company or at the NSE platform price before the delisting cut-off date, or to sell on the NSE platform after delisting, or hold on to their shares and continue to receive their dividend.

The company said it could choose to return to the NSE platform sometime in the future.

“The minority shareholders have nothing to fear or worry about in connection with the delisting,” it added.”

Markets Reporters had reported on Feb. 10 that 11Plc said it would set aside sufficient funds to settle all dissenting shareholders as it pushes ahead with the plan to delist from the NSE.

According to the statement, the 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 considered and approved, was in tandem with item 1.11 of the Voluntary Delisting Rules of the NSE.

The company said, “Hence, the amount proposed is not an arbitrary amount but was arrived at in strict conformity with the extant Rules.

“The fact that the price got higher than that now cannot override the resolution. In any case, shareholders who want to sell but do not want to sell at the proposed price, can also sell at the NSE platform before the delisting date.

“Minority shareholders are not bound to sell their shares but may decide to keep their shares (which will still be freely tradable on the NASD OTC platform) in view of the company’s track record on dividend payouts.”