By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Portuguese branded eatery Food Emporium International Limited (Barcelos) will no longer list its shares on the floor of the Nigerian Stock Exchange (NSE) as promised in its 2008 private placement memorandum.
Wale Agbeyangi, Managing Director (MD) Cordros Capital Limited, co-financial advisers to the company’s placement confirmed this to InvestAdvocate in Lagos Nigeria.
Agbeyangi however said that the cancellation to list on the Nigerian bourse was endorsed by shareholders of the company after it held an extra-ordinary general meeting (EGM).
‘’The shareholders of the company met and approved the decision for the company to cancel its listing plans on floor of the NSE,’’ he said.
InvestAdvocate gathered that the reason is not unlikely connected to the poor performance of the company compared to its peers in the industry.
Barcelos in 2008 sought to raise N750 million by way of placement by offering to select investors 300 million Ordinary Shares of 50 Kobo each at N2.50 Kobo per share.
Olaolu Akerele, Managing Director (MD) of Barcelos had said in an interview in 2008 with the reporter of this story that the company intends to expand to other parts of West Africa and would list its shares on the Nigerian bourse in 2009.
It was gathered that the purpose of the offer was to set up new outlets, Akerele had reported that Barcelos as at 2008 had six (6) outlets, four (4) in Lagos, one (1) in Abuja and Accra Ghana respectively.
The ownership structure of Barcelos cut across Nigerians and South Africans. Nigerians own 80 percent stake in the company while the South African own 20 percent.
However, the company had in the third quarter (Q3) of 2010 decided to create an Over-the-Counter (OTC) platform for investors who wish to sell off their shares and exit.
Agbeyangi said the OTC platform is still on and the shares of Barcelos can be traded on it.
Barcelos cuisine is Portuguese oriented and Food Emporium International, owners of the brand have franchise for the whole of West Africa.
As at 2008 when the company opened the placement, Barcelos had been in the business for over five (5) years and said it was only interested in maintaining its standards.
Lead Financial Advisers to the Placement were Cordros Capital Limited and Staco Prime Capital Limited, while joint Financial Adviser is F & C Securities Limited.
