NSE suspends 11 over delisting

The Nigerian Stock Exchange (NSE) yesterday suspended trading and price movement on 11 Plc, formerly known as Mobil Oil Nigeria Plc.

The full suspension was sequel to the ongoing delisting of the shares of the downstream oil and gas company.

According to the Exchange, the suspension was necessary to prevent trading in the shares of the company following NSE’s approval of the company’s voluntary delisting application.

“The suspension is preparatory towards the eventual delisting of the company from the Daily Official List of Nigerian Exchange Limited,” NSE stated.

11 has said the proposed delisting of its shares will enable it to implement strategic plans that will improve the overall performance of the downstream oil company.

Explaining the rationales for the delisting to shareholders, 11 stated that it will enable the company to explore strategic opportunities, alliances and collaborations that can bolster earnings and synergised benefits with little or no regulatory obligations.

According to the company, delisting will lead to greater focus and impact on the performance of its performance while it will not have any material changes on its operations, staff and board compositions.

“11 Plc will be able to focus on revenue generation, consider strategic opportunities, alliances and collaborations; and tremendously shift from regulatory, administrative, and financial reporting regulations that companies listed on the Nigerian Stock Exchange must adhere to,” 11 stated.

The company stated that while its shares will no longer be available for trading on the NSE upon delisting, it will continue to operate as an unlisted public company. This raises possibility of its shares being listed and traded on the NASD OTC Securities Exchange –the over-the-counter platform for trading of unlisted public companies.

The company noted that the delisting will not have any impact on the existing employment contracts of its staff as well as the composition of the board of directors.

Shareholders of 11 had at their annual general meeting (AGM) on October 14, 2020 approved a resolution to delist the entire 360.6 million ordinary shares of 50 kobo each of 11 from the NSE.

Under the delisting arrangements, shareholders who prefer to remain with the company as unlisted public company will continue with the company but those who indicate their dissent will be paid exit consideration. Dissenting shareholders shall be paid off.

Upon the expiration of the March 01, 2021 deadline for dissent, 11 will set aside sufficient funds and provide evidence of funding to the Exchange, to demonstrate that it has the financial resources to settle any dissenting shareholder.

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 shares have traded, six months preceding the notice of the AGM at which the resolution to delist was deliberated, as provided by the rules of the NSE.

Once the transaction is approved by both the Securities and Exchange Commission (SEC) and the NSE, the shares of the company shall be expunged from the daily official list of the Exchange. Furthermore, all dissenting shareholders would be settled and cease to be shareholders of 11.

The board of 11 said the delisting have taken into consideration the benefits of shareholders based on the terms and conditions of the proposed delisting.