Shareholders of AG Leventis Nigeria, one of the oldest companies listed on the Nigerian Stock Exchange (NSE), will gather at a court-ordered meeting to consider the proposal by the directors seeking to delist its entire shares from the bourse.
As part of the plan to buy-out the minority shareholders, the core investor of the company is offering its earlier mentioned 53 kobo per share as consideration, as recommended in the scheme of arrangement.
An analysis of the company’s shareholding structure shows that as of June 30, 2019, Leventis Holdings S.A. held 1.51bn shares, or 57.06%; followed by Boval S.A with 640.537m units or 24.2%; and Leventis Overseas Ltd, 177.198m shares of 6.69%, bringing the total holding by the majority shareholders to 87.95%, meaning that the company suffered a free-float deficiency.
The offer price of 53 kobo, the company noted, represents a premium of 85% to the 60-day volume-weighted average share price and 104% to its closing share price on September 23, 2019 (READ MORE).
AG Leventis was founded as a large Nigeria-based conglomerate in 1937, by Anastasios G. Leventis, beginning with produce buying, importing and wholesaling of textile goods, after which it expanded rapidly into one the largest enterprises. It also became one of the two largest employers in Nigeria at the time the founder did in 1978. Incidentally, that was also the year its shares were listed on the Nigerian Stock Exchange (NSE), on November 29, 1978.
The company took advantage of emerging opportunities in the growing Nigerian economy, foraying into motor vehicle distribution when it floated Leventis Motors Limited in 1958; followed by Leventis Stores Limited, seven years later. This was followed by Leventis Technical Limited in 1972, besides the acquisition of valuable freehold and leasehold property throughout the country.
The various subsidiaries were however fused into the present holding company structure, as the nation’s economy began to experience contraction and purchasing power dropped.
AG Leventis, however, maintained a presence in several industries, like power and gas, consumer food pastry/bakery products, real estate properties, hotel Accommodation services, commercial vehicle, sales & after-sales services, and Printer ink supplies.
These activities are carried out through subsidiaries and affiliated companies such as Leventis Foods Ltd, Leventis Motors, Abuja (Capital Motors) Ltd, Mainland hotel, Leventis Real Estate, Druckfarben Nigeria Ltd, and Chrisstahl Nigeria Ltd.
At the height of its prowess in the 70s and 80s, the company owned and managed a football club: Leventis United, based in Ibadan, Oyo State, with household names, at the time, as players. The club, which died, just as its contemporaries like Abiola Babes, Stationeries Stores, among others, was managed by John Mastroudes.