Ashaka Cement board proposes voluntary delisting from main board

The board of AshakaCem Plc has passed a resolution to propose 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 on Wednesday 16th November, 2016.

The resolution will be presented for consideration by shareholders of AshakaCem at an extraordinary general meeting scheduled to hold on Monday 19th December, 2016.

According to Country Communications/Public Affairs Director, Lafarge Holcim Plc, Folashade Ambrose-Medebem, “At the conclusion of the Mandatory Tender Offer (MTO) in 2015, AshakaCem’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.”

Folashade said the voluntary delisting of AshakaCem, the directors of the company will be shielding the company from any enforcement action that the exchange may effect.

She said the voluntary delisting process will provide 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.

“Upon the conclusion of extraordinary general meeting, shareholders of AshakaCem may exit the company prior to the delisting by either, trading their shares on the floor of the NSE through their nominated stockbroker or accept exit terms as were offered for the MTO and VTO”, she said.

Under the proposed delisting and settlement of consideration, minority shareholders in AshakaCem will be offered benefits, including revenue diversification by geography as a result of Lafarge Africa’s operations in Nigeria, South Africa and Ghana.