Nigeria: 11 Plc considers $0.53 as exit price for NSE delisting

11 Plc on the 9th of February 2021 issued an explanatory note to its shareholders via the Nigerian Stock Exchange as regards its proposed delisting of a total of 360,595,262 ordinary shares of 11 Plc, currently listed on the Nigerian Stock Exchange.

The Nigerian oil company stated that the interest of dissenting shareholders shall be bought by the Company for a consideration of N213.90 ($0.53 or Ghs 3.09) per ordinary share, being the highest price at which 11 Plc shares have traded, six (6) 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.

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It is important to note that the six months 11 Plc. used for its exit price consideration was the highest closing price between March 13th, 2020, and September 16th, 2020.

According to the leading oil downstream company, the objective of such delisting was to enable the Company to explore strategic opportunities, alliances, and collaborations that can bolster earnings and/or provide synergized benefits with little or no regulatory requirement.

The company stated that following the conclusion of the delisting process, 11 Plc will become an Unlisted Public Liability Company. It also stated that shareholders who disapprove of the delisting can indicate their dissent through the registrar for appropriate consideration.

At the time of drafting this report, the oil company was trading an N228 per share 6% above its delisting mark price.

In case you missed it

• The process of delisting for 11 Plc began in February 2020 after the Board of Directors approved the voluntary delisting of the multinational oil marketing from the Nigerian Stock Exchange (NSE) subject to the approval of the shareholders.

• Recall about a week ago, Nairametrics reported of minority shareholders growing wary of getting a good return on their investment in the leading oil company as the current value of the stock trades at N228.

• Khalil Woli, an Oil & Gas analyst at CardinalStone Partners in an exclusive interview with Nairametrics shared insights on the exit price minority holders are anticipating after shareholders approved the delisting of the stock from the NSE at the Annual General Meeting (AGM) on October 19, 2020.

• Woli said, “According to SEC rules, the company has to offer a price not lower than its highest in the last six months to minority shareholders in the event of a ticker delisting. MOBIL’s highest trading price in the last six months is N249.95, a 9.6% premium to its last closing price of N228.00.”