The Nigerian Stock Exchange (NSE) has delisted the entire issued share capital of Paints and Coatings Manufacturers Nigeria (PCMN) Plc, concluding the voluntary delisting of the paints and chemical company.
The NSE operates two delisting windows-voluntary and compulsory delisting. Under voluntary delisting, quoted companies can opt to delist their shares from the Exchange due to various reasons including mergers and acquisitions, restructuring and private interests subject to fulfilment of the delisting rules and requirements.
Under the compulsory delisting window, the NSE may opt to delist companies that have failed repeatedly to meet extant rules and best practices in line with the Exchange’s commitment to protect investors and ensure that listed companies comply with global best practices.
Shareholders of PCMN had earlier this year approved sub-joined resolutions that would see the relapse of the company to a private limited liability company and the delisting of its shares from the NSE.
A Federal High Court had directed the company to convene a court-ordered meeting on February 15, 2018 in Lagos during which shareholders deliberated and voted to approve a scheme of arrangement for the change in the status of the company and the delisting from the NSE. A new company-Paintcom Investment Nigeria Limited is proposed to emerge after the delisting.
The Asset Management Corporation of Nigeria (AMCON) had sold the fourth largest equity stake in PCMN to Bizfeat Ventures Limited, a relatively unknown firm. AMCON, the bad-debt resolution corporation floated by the government, transferred its 7.4 per cent equity stake in PCMN to Bizfeat Ventures through a negotiated cross deal at the NSE.
The block divestment involved transfer of a total of 58.66 million ordinary shares of 50 kobo each held by AMCON to Bizfeat Ventures at a negotiated price of N1.05 per share.