The Nigerian Stock Exchange, on Friday, suspended the shares of Seven-Up Bottling Company, following a takeover bid from majority shareholder, Affelka, from minority holders.
Seven-Up shareholders have passed a resolution to back the takeover bid by Affelka, which will see the company delisted from the bourse.
Meanwhile, the shareholders had approved the Scheme of Arrangement for the acquisition of 26.8 per cent shares by Affelka South Africa. The shareholders gave the approval at a court-ordered meeting convened at the instance of the Federal High Court in Lagos.
Affelka S.A., with the approval, would now increase its ownership of the company to 100 per cent by acquiring all the outstanding and issued shares, previously held by the minority shareholders.
The majority shareholders would make a payment of N125 per scheme share to each shareholder in consideration for the transfer of the shares.
The company’s Chairman, Mr. Faysal El-Khalil, said the development would create considerable benefits and opportunities for all
stakeholders.
“We believe that the Scheme will create considerable benefits and opportunities for all stakeholders of Seven-Up Bottling Company and will serve to protect minority Shareholders from a continuous erosion of value,” he said.
The National Coordinator, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, said that the shareholders approved the scheme because of the price review.
Okezie said that the shareholders had no choice than to approve the arrangement since the Securities and Exchange Commission and the Nigerian Stock Exchange have their consent without fighting for the minority shareholders.
