By Gbenga Agbana

Wednesday, 20 Oct 2010

Four companies in the emerging markets segment of the Nigerian Stock Exchange may be delisted from the official list soon, if the directive given by the NSE’s management recently is anything to go by.

Investigations by our correspondent revealed that only West African Aluminium Company Plc complied with the directive of the NSE companies to submit details of their results and details of the fulfilment of the post-listing requirements of the stock exchange to the Council, on or before October 11, 2010.

The companies likely to be affected, according to our correspondent’s investigations include, Flexible Packaging Plc, Krabo Plc, Newpak Plc and Tropical Petroleum Plc.

When contacted for comments on the development, the Assistant General Manager, Corporate Communications, NSE, Mr. Sola Oni, confirmed the NSE’s plan to delist some companies which did not comply with the post listing requirements.

According to him, “There is no going back on the NSE’s Plan to delist the companies, if they refuse to comply with the post-listing requirements.”

He also confirmed that only West African Aluminium Plc has so far complied with the directive of the NSE.

As part of efforts to sensitise the operations of the NSE and rid it of unwholesome practices, the council of the Exchange last month approved the suspension of some quoted companies, while others were placed on the watch list.

A statement from the NSE early last month said, the affected companies had defaulted in fulfilling the post-listing requirements, especially in the area of financial reporting of their operations and the payment of annual listing fees.

The NSE said if the regularisation was not concluded by October 11, 2010, the NSE would commence the delisting process of the companies.

Some companies in the emerging market segment were also put on the watch list, to enable them complete recapitalisation activities, hold Annual General Meetings and clear all regulatory issues.

Source: Punch