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 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.
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.”
President Buhari charges newly appointed Service Chiefs to secure the country
President Buhari has decorated the newly appointed Service Chiefs at the State House, Abuja.
President Muhammadu Buhari has issued charges to the newly appointed Service Chiefs, ordering them to identify competent officers irrespective of seniority and paper qualifications and work with them to secure Nigeria.
Buhari disclosed this at the State House in Abuja on Friday during the decoration of the Service Chiefs.
“I have charged the new Service Chiefs to keep in mind that the nation is looking to them for rapid relief. They must identify competent officers irrespective of seniority and paper qualifications, and work with them to secure this country,” President Buhari said.
“As I assured at our last security meeting, I have taken responsibility as C-in-C for them to go out into the fields and every part of the country, to ensure peace and security. I have accepted responsibility for all actions taken in fulfillment of the mandate to secure Nigeria,” he added.
— Presidency Nigeria (@NGRPresident) March 5, 2021
What you should know
- Nairametrics reported in January that President Muhammadu Buhari has appointed new Military Service Chiefs, and congratulated the outgoing Service Chiefs for efforts of “enduring peace to the country.”
- The new service chiefs include Major-General Leo Irabor, Chief of Defence Staff, Major-General I. Attahiru, Chief of Army Staff, Rear Admiral A.Z Gambo, Chief of Naval Staff, Air-Vice Marshal I.O Amao, Chief of Air Staff.
- Meanwhile, the Nigerian Senate endorsed the nomination of the past serving Military Service Chiefs as Non-career Ambassadors.
NERC issues order to DisCos on replacement of faulty, obsolete meters
NERC has issued a directive to DisCos on the structured replacement of faulty and obsolete meters for their customers.
The Nigerian Electricity Regulatory Commission (NERC) has issued a directive to the electricity distribution companies (DisCos) on the structured replacement of faulty and obsolete meters for their customers with effect from March 4, 2021.
This is to remove the bottlenecks that had previously impeded the rapid deployment of meters to unmetered customers and the receipt of complaints from metered customers in fourth-quarter 2020, that they had been served meter replacement notices by DisCos when all stakeholders were preparing for the National Mass Metering Programme (NMMP).
The directive from NERC is contained in Order No. NERC/246/2021, Titled, “In the matter of the order on structured replacement of faulty and obsolete end-user customer meter in Nigerian Electricity Supply Industry (NESI),” issued on March 4, 2021.
The commission noted that over 7 million customers are currently unmetered as indicated by the customer enumeration data. It also estimates that an additional 3 million meters are currently obsolete and due for replacement.
NERC pointed out that the existence of unmetered customers contributes to the threat affecting the financial viability of the NESI as unmetered customers expressed their displeasure with the estimated billing methodology.
The statement from NERC partly reads, “The Commission notes that over 7 million customers are currently unmetered as indicated by customer enumeration data. It is also estimated that an additional 3 million meters are currently obsolete and due for replacement.
“The existence of a large population of unmetered customers contributed to threats affecting the financial viability of NESI as unmetered end-use customers expressed deep dissatisfaction with the estimated billing methodology.
“The revenue assurance objectives of DisCos have also been challenged by being unable to properly account for the utilisation of electricity by end-use customers”.
Following the review from both the metered and unmetered customers, NERC issued the following order;
- DisCos shall grant priority to the metering of unmetered customers under the National Mass Metering Program.
- DisCos may replace faulty/obsolete meters under the National Mass Metering Program but these replacements must be done in strict compliance with the Metering Code and other regulatory instruments of the Commission.
- DisCos shall inspect meters of metered end-use customers and the replacement notice shall contain the following –
- The date of the inspection
- Name, designation and signature of the officer that inspected the meter.
- The fault identified in the meter.
- The date for the installation of the replacement meter
- The Commission shall be copied on all replacement notices issued to end-use customers for the purpose of conducting random reviews of the replacement
- New meters must be installed upon the removal of the faulty/obsolete meter and under no circumstances shall the customer be placed on estimated billing on account of the DisCo’s failure to install a replacement meter after the removal of the faulty/obsolete meter.
- The customer and DisCo representative shall jointly note the units on the meter being replaced and the customer must be credited with these units within 48 hours after the installation of the meter.
- Customers shall only be billed for loss of revenue where the DisCo establishes meter tampering, by-pass or unauthorised access as contained in NERC Order/REG/ 41/2017 on Unauthorised Access, Meter Tampering and Bypass.
- Activation tokens shall be issued to customers immediately after replacement of the faulty/obsolete meter.
- DisCos shall file monthly returns with the Commission on the replacement of faulty/obsolete meters along with their proposal for the decommissioned meters.
This Order may be cited as the Order on the Structured Replacement of Faulty/Obsolete Meters of End-Use Customers.”
What you should know
- NERC was mandated in the Electricity Power Sector Reform Act to maximize access to electricity services, by promoting and facilitating customer connections to distribution systems in both rural and urban areas and establish appropriate consumer rights and obligations regarding the provision and use of electricity services.
- Meters serve as a revenue assurance tool for NESI service providers and a resource management tool for consumers that receive services with the Meter Asset Provider (MAP) Regulations coming into force on April 3, 2018.
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