- NSE Suspends Trading in 7-UP Shares
The Nigerian Stock Exchange on Friday suspended the shares of Seven-Up Bottling Company Plc following a takeover bid from majority shareholder, Affelka S.A., to the minority holders.
In a public notice, the Exchange confirmed that 7-UP shareholders had passed a resolution to back the takeover bid by Affelka S.A. which would see the company delisted from the NSE.
Shareholders of the company had on Thursday approved the scheme of arrangement by which Affelka S.A. would acquire the outstanding 26.8 per cent shares of the firm.
The shareholders gave their approval at a meeting that was convened at the instance of the Federal High Court in Lagos.
Affelka S.A. will now increase its ownership of the company to 100 per cent by acquiring all the outstanding and issued shares previously held by the minority shareholders.
In consideration for the transfer of the shares, a payment of N125 per scheme share will be made to each shareholder. The payment represents a 22.6 per cent premium on the last traded share price of Seven-Up on January 9, 2018 and a 27.6 per cent premium on the share price as of the close of August 9, 2017, being the last business day prior to the date the initial proposal was received from Affelka.
Chapel Hill Denham Advisory Limited acted as financial advisers to the transaction and Aelex Partners as solicitors to the company.
The Chairman, Seven-Up Bottling Company, Mr. Faysal El-Khalil, had said, “We believe that the scheme will create considerable benefits and opportunities for all stakeholders of Seven-Up Bottling Company Plc, and will serve to protect minority shareholders from a continuous erosion of value.
“Furthermore Seven-Up Bottling Company is again assured of Affelka’s long-term commitment to the company and Nigeria.”