The Nigerian Stock Exchange (NSE) has announced the suspension of trading on the shares of Paints and Coatings Manufacturers Nigeria (PCMN) Plc as the company moves to finalize its voluntary delisting from the Exchange.
NSE noted that the suspension became necessary in its bid to determine shareholders that will qualify to receive the scheme shares ahead of the implementation of the voluntary delisting of the company.
Asset Management Corporation of Nigeria (AMCON) had sold its equity in PCMN to Bizfeat Ventures Limited, a relatively unknown firm.
This involved the 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.
AMCON transferred its 7.4 percent equity in PCMN to Bizfeat Ventures through a negotiated cross deal at the NSE.
Subsequently, a Federal High Court directed the company to convene a court-ordered meeting where shareholders will deliberate and vote on the scheme of arrangement for the change in the status of the company and the delisting from the NSE.
According to NSE regulations, quoted companies can opt to voluntarily delist their shares from the exchange due to various reasons including mergers and acquisitions, restructuring and private interests subject to fulfillment of the delisting rules and requirements.
While under the compulsory delisting rules, the NSE may decide to delist companies that have failed repeatedly to meet rules and best practices in line with the Nigerian Stock exchange’s commitment to protect investors and ensure that listed companies comply with global best practices.