BOWS Nigeria Limited has obtained approval from the Securities and Exchange Commission (SEC) to launch the mandatory takeover of a 32.99% stake in Courteville Business Solutions Plc.
The shares, which are equivalent to 1,171,939,459, are currently held by the other shareholders of Courteville. BOWS Nigeria now wishes to offer 48 kobo per ordinary share (net of any applicable tax) to buy out the other shareholders and take charge of 100% of the company.
The tender offer will begin on February 22 and end on March 22, 2023, according to a disclosure signed by Courteville’s company secretary Jackson, Etti and Edu.
More details: The corporate disclosure further informed the investing public that the mandatory takeover bid is now valid as it has been registered with the Securities and Exchange Commission. Part of the statement said:
- “The investing public and the Nigeria Exchange Limited are hereby informed that BOWS Nigeria Limited, a shareholder which holds 67.01% of the issued share capital of the company, made a proposal to buy the 32.99% held by the other shareholders of the company through a Mandatory Takeover Bid (MTO) to the Securities and Exchange Commission (SEC), and the MTO has been registered with the SEC as SIS/M&A/TBR/CBS/000824 in the Commission’s record.”
The backstory: The development follows a special resolution that was passed by the shareholders during the 17th Annual General Meeting of Courteville Business Solutions Plc (the company) held on 26th, July 2022. The resolution approved the delisting of the company, which
The directors of the company were then authorized to commence the process of voluntary delisting of the securities of the company from Nigerian Exchange Limited (NGX) subject to the applicable rules of NGX and compliance with other statutory requirements.
In addition, the company resolved that all relevant regulatory approvals from the Securities and Exchange Commission, Nigerian Exchange Limited, the Federal High Court, and the Federal Competition & Consumer Protection Commission be obtained, and shareholders who so elect should be given an exit opportunity before the security is delisted.
It also resolved that the company be re-registered as a private company under the Companies and Allied Matters Act 2020 by the name of Courteville Business Solutions Ltd and that its memorandum be amended.
The law does not protect minority shareholders adequately. More delisting are coming. The exchange needs to attract good listings to the market. For now, there is nothing to cheer about. The numerous delistings in the last twelve years were overshadowed by the few good listing attracted to the market