By Peter OBIORA investadvocate

Sept 06 2010 07.30 GMT

 

Lagos–Food Emporium International Limited operating a Portuguese branded eatery (Barcelos) is set to provide Over-the-Counter (OTC) opportunity for shareholders of the company willing to trade their shares; since the company is yet to list on the Floor of the Nigerian Stock Exchange (NSE) to do so with ease.

Wale Agbeyangi, Managing Director (MD) Cordros Capital Limited, one of the lead Financial Advisers to the Placement confirmed this to investadvocate Friday September 03 2010 in Lagos Nigeria.

“OTC is a liquidity window whereby investors who want to trade the Barcelos share certificates are given the opportunity since the company is yet to list” he said.

Agbeyangi affirmed that the company has had its Annual General Meeting (AGM) and is still committed to list on the Exchange.

“We have had an Annual General Meeting (AGM), shareholders have received their certificates from Barceló’s over a year ago and we are committed to listing the company on the Nation’s Stock Exchange; but the consensus we had when shareholders met was to still put on hold the listing; due to the current problem that has not yet been resolved in the Capital Market” Agbeyangi affirmed.

He further affirmed that the decision to put on hold its listing was for investors not to lose value on their investments if the Eatery firm lists at this time. “The reason for this is to avoid the erosion of value on shareholders investments hence the arrangement to provide a liquidity window in terms of OTC for investors who want to trade the Barcelos share certificates to do so with ease and make money on their investments” Agbeyangi said.

Barcelos in October 2008 opened a Private Placement and sought to raise N750 million by offering 300 million ordinary shares of 50 kobo each at N2.50 Kobo per share to select investors.

As earlier reported, on listing the company on the Stock Exchange, Olaolu Akerele, Managing Director (MD) of the company  had affirmed that they are doing their best to improve on investors returns through historical dividend payment and that the company may not consider immediate listing on the Exchange. “Listing Barcelos depends on the outcome of the Private Placement” he said.

“We are not listing if we have not created any track record. After the end of the placement, we may consider 2009 or 2010. If the investors through the placement help us to achieve our desired result; then we can go public” Akerele affirmed.