The Nigerian Exchange has officially delisted Union Diagnostic and Clinical Services Plc from its main board following the conclusion of its scheme of arrangement.
The medical diagnostics firm had earlier in September 2021, notified the Exchange of its decision to delist from the Exchange’s board.
The disclosure stated that, “The shareholders unanimously approved the delisting of the Company’s shares at the last Annual General Meeting and Court Ordered Meeting held on the 25th of January, 2021. The Company has obtained all relevant regulatory approvals from Securities Exchange Commission (SEC), the Nigerian Exchange Limited, Federal High Court, Federal Competition and Consumer Protection Commission (FCCCP)”.
According to the Scheme of arrangement published in January 2021 by the company, 1,407,855,051 units of shares held by the scheme shareholders were to be acquired by Cedar Advisory Partners Limited (“Cedar”), an existing shareholder with a total of 20.04% shareholdings.
What this means
The transaction involved the transfer of 1,407,885,051 units of shares to Cedar in consideration for cash payment of 35 kobo per share to the scheme shareholders, taking the total cash consideration to N492,759,767.85. Upon the conclusion of the transaction, the company has been delisted from the Exchange.
The decision to delist from the Exchange by the company was motivated by certain challenges around the inability to raise capital to fund expansions, the challenging operating environment and strong headwinds specifically relating to poor health-seeking behaviour of Nigerians, gross underfunding of the healthcare sector and depreciating exchange rates that affect the importation of consumables.
Following the delisting, the post-scheme shareholding structure entails, Cedar Advisory Partners Limited, Lifecare Partners Limited, Akinniyi Ambrose Olusola, Akinniyi Elizabeth Abimbola emerged as the shareholders of the company with a respective shareholding of 2,119,771,663; 1,038,000,000; 233,462,131; 161,904,734, reaching a total of 3,553,138,528 units of shares.
What you should know about the majority shareholders of Union Diagnostics
Cedar is an investment company that specializes majorly in the health care ecosystem with a focus on growth capital investments and value creation through operating turnaround. Cedar Advisory Partners Limited holds 59.66% shareholdings in the company following the acquisition.
Lifecare Partners Limited is an accredited HMO in Nigeria, holding 29.21% shareholding in Union Diagnostics Plc. Dr. Akinniyi Olusola, a Director of Union Diagnostics Plc, currently owns 98.50% of equity interest in Lifecare Partners Limited.
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