NewRest ASL Blames Illiquidity, Costs, For Decision To Delist From NGSE

NewRest ASL Blames Illiquidity, Costs, For Decision To Delist From NGSE


Post Views: 186 The board of NewRest ASL (formerly Airline Services & Logistics Plc), on Thursday, blamed the decision to voluntarily delist its ...

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The board of NewRest ASL (formerly Airline Services & Logistics Plc), on Thursday, blamed the decision to voluntarily delist its shares from the Nigerian Stock Exchange (NSE) on the significant drop in trading volumes of its stock.
The company was listed on the NSE almost 12 years ago, on July 25, 2007.
In an extension notice to shareholders on the proposed voluntarily delisting, the company noted that trading on its shares dropped by 69.065m or 88.45% from 68.094m units in full-year 2017 to 9.029m in the whole of last year.
This, it continued, means that “neither the company nor any shareholder is benefiting from the continued listing on the NSE.”
The company, in the same statement by LPC Solicitors, its company secretary, provided an answer to the issue, when it noted that its affiliates and related companies jointly hold about 82.82% of the current shareholding, leaving minority shareholders with just 18.18%.
NewRest ASL also noted that the decision to list was based on its intention to raise capital for its operations while providing liquidity to shareholders, a primary objective that has been rendered unattainable and made worse by the current illiquidity in the NSE.
Given the rationalization of operational expenses to support the company’s business, while meeting the needs of various stakeholders, along with the attendant cost and time needed to comply with the NSE’s listing requirements, it continued, are not commensurate with the expected benefits.
It listed the listing requirement to include: Quarterly and annual filings, annual certifications, filing fees, penalties or sanctions, corporate governance, (CGRS) certifications, annual general meetings and extraordinary general meetings.
The majority shareholders and its affiliate, the statement continued, are offering the minority shareholders an “opportunity to either remain shareholders of unlisted company or accept a consideration for their shares which the majority shareholders are willing to purchase in line with NSE regulatory requirements for a voluntary delisting. An exit opportunity is provided for shareholders who do not wish to be part of the delisted company.
The consideration period for shareholders to accept the exit the consideration was extended to April 25, 2019, while those who accept the offer will be computed by the following day by the registrars.
Cash consideration will then be settled by way of electronic transfer to the respective bank accounts of those who take the exit opportunity within 72 hours of the collation (April 29).
The Nigerian Stock Exchange (NSE), on Wednesday, February 27, 2019, announced full suspension of trading in the shares of Newrest ASL Plc from its Daily Official List, following its February 19, 2019, application for voluntary delisting of its entire, 634,000,000 ordinary shares.
The Exchange notified its dealing member firms that further to approval of the application, “the shares of Newrest ASL were today, Wednesday, 27 February 2019 placed on full suspension.”
This suspension, the exchange explained, “is required to prevent further trading in the shares of Newrest ASL and in order for the Company to comply with the post-approval requirements which will precede the final delisting of the company from the Daily Official List of The Exchange.
“Dealing Members will be notified of the date of the Company’s delisting in due course,” the statement added.