By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) Thursday placed the shares of Nigerian Bottling Company Plc (NBC) on full suspension in preparatory to delisting the Firm from its Floors.

As earlier reported, NBC Plc, producers of Coca Cola will in less than two weeks (13 days) from this date be delisted Wednesday September 07 2011 from the Bourse of the Nigeria’s Exchange and would cease to exist as a listed Firm in Nigeria.

NBC has been on the NSE for almost 38 years; since 1973. On December 14 2010, NBC issued a notice through the NSE informing the public and its shareholders that it is planning to delist from the Nigeria’s Exchange in order to emerge a wholly owned subsidiary of its majority shareholder, Coca-Cola Hellenic Bottling Company of South Africa through a proposed scheme of arrangement.

The proposed Scheme of Arrangement (“Scheme”) between the Company and its members is expected to involve a cancellation of part of its share capital; such that the Company would become a wholly owned subsidiary of its majority shareholder, Coca-Cola Hellenic Bottling Company S.A. (“Hellenic”).

Following this, the Company proposed to offer investors a cash payment of N43.00 per NBC share as consideration to the minority shareholders.

The Firm had said the proposed price would provide all minority shareholders with a premium of 37.4 percent (37.4%) to the 30-day average closing price and 43.2% to the closing price of NBC shares on the NSE on December 13 2010 which was N30.03 per NBC share.

However, following outcries by shareholders of NBC and other stakeholders the Company came up with N47.71 per share payoff compared to the earlier proposed N43.00.

Also, NBC said that its planned delisting from the Nigeria’s Exchange is for the Company to make a N45 billion strategic investment within the next three years, take advantage of the emerging business opportunities in Nigeria and seek recapitalisation. 

Adeleke Adebayo, the General Secretary Independent Shareholders Association of Nigeria (ISAN) had exclusively told InvestAdvocate Wednesday January 19 2011 that in a meeting between the entire Board and Management of the Company and Nigerian Shareholders represented by ISAN, NBC said that the strategic investment would take them up to 10 to 15 years to resume the payment of dividends.

“They are saying that Nigerian Shareholders cannot wait for a period of between 10 to 15 years when the company may likely resume the payment of dividend; therefore opt to delist and buy off minority shareholders” Adebayo said.