At an Extraordinary General Meeting (EGM) held in Abuja, yesterday, the shareholders of Ashaka Cement Plc approved the proposed voluntarily delisting of the company from the Nigerian Stock Exchange (NSE). Following the EGM, shareholders of the company will have a 90-day window as specified by NSE rules on voluntary delisting to decide on the exit plan on offer to shareholders.
Last month, the Board of Directors of AshakaCem Plc proposed to delist all of the ordinary issued share capital of AshakaCem from listing on the Official List and from trading on the Main Market of the Nigerian Stock Exchange.
As proposed by the Board of Directors and passed by shareholders at the EGM, shareholders may exit the company within the regulatory 90 days period prior to the official delisting of the company by either trading their shares on the NSE through their nominated stockbroker or receive 57 shares of Lafarge Africa Plc in exchange for 202 Ashaka Cement shares and a cash consideration of N2 per every AshakaCem exchanged.
The Board of Directors of Ashaka Cement Plc had opted for a voluntarily delisting of the company from the NSE in violation of the exchange’s Free Float Deficiency provision of 20 per cent.
According to the directors, Lafarge Africa Plc currently holds 84.97 per cent of Ashaka Cement, bringing the free float that is tradable on the NSE to 15.03 per cent as against 20 per cent stipulated by the exchange.