sitemaps.org/schemas/sitemap/0.9/sitemap.xsd BrandArena: Investors to lose N39bn as NSE delists 4 companies

Monday 24 November 2014

Investors to lose N39bn as NSE delists 4 companies

The management of the Nigerian Stock Exchange (NSE) has said it would delist four companies that failed to comply with its listing rule and general undertaking.

The affected companies, which include Pinnacle Point Group Plc, Afroil Plc, Starcomms Plc and Big Treat Plc, have market capitalization of N33.341 billion, N2.599 billion, N3.544 billion and N1 billion respectively, amounting to N39.485 billion.

On Monday, June 23rd 2014, the NSE published a notice of its intension to delist 24 listed companies from its daily official list, arising from their non-compliance with provisions of the listing rules of the Exchange and pursuant to Clause 15 of the General Undertaking.

According to advertorial signed by the management of the Exchange, the notice provided a 3-month window for each of the affected listed companies to regularise its listing status with the Exchange.

“Subsequently, a final delisting notice was published on Tuesday, October 14, 2014. As of today, one of the affected companies has fully regularised its listing status. Further, 19 companies have taken some steps to regularize their listing status. The Exchange will continue to engage these 19 companies with a view to bringing them into compliance with their post listing obligations,” it said.

The NSE affirmed that the four affected companies have failed to take any or appropriate steps to regularise their listing status. The Exchange therefore said it has proceeded to delist them, effective Monday, November 24.

Speaking with Daily Trust, National President of Progressive Shareholders Association of Nigeria, Boniface Okezie, said it is a welcome development as the companies failed to make available information to investing public.

According to him, “the companies have given enough time to comply with the Exchange but they refused to comply.” He urged the regulators, especially the Securities and Exchange Commission (SEC), to sanction the directors of the affected companies.

“The directors of those companies should be held responsible and their names should be blacklisted,” he said.

Source: Daily Trust

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