By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)- The Nigerian Stock Exchange (NSE) is yet to protecting investors on the breach of voluntary delisting of Cappa & D’Alberto Nigeria Plc since year 2009.
Cappa & D’Alberto Nigeria operating in the construction sector of the Nigeria’s Exchange in March 2009 released itself from compliance with the obligations expected of a listed company on the floor of the Nigerian Bourse.
The company for about five (5) years has failed to follow through the entire voluntary delisting process of the Nigeria’s Exchange, which includes paying off dissenting shareholders who opted to exit the company following the resolution passed by the majority shareholders on March 24, 2009, to delist.
The resolution passed by the majority shareholders at the Extra- Ordinary General Meeting (EGM) of March 24, 2009, does not exempt Cappa & D’Alberto from complying with regulatory obligations.
The NSE had always announced in its X-Compliance report as regards the delisting of Cappa & D’Alberto that it will take appropriate legal steps to enforce its Rules and protect the interest of Investors in the Nigerian Capital Market (NCM).
InvestAdvocate sought to know the status update of the company in paying off its dissenting shareholders following its decision to delist from the NSE, Josephine Igbinosun, Head, Listings Regulation Department of the NSE said the council of the Exchange has meet in mid-January 2014 to discuss the issue and would soon come out with a decision on the matter.
Cappa & D’ Alberto had in 2009 said that one of the fundamental reasons it sought to delist from the Nigerian Bourse was that charges been paid to the Stock Exchange is on a higher side; therefore cannot cope up with it.
As earlier reported, E. Calvino, Financial Director (FD) of Cappa & D’Alberto had said that given the structure of the company, they do not need to be a listed entity.
“This decision has been taken by the Board in the interest of the company” he said.
Calvino further affirmed that the shares of the Cappa & D’Alberto were first listed on the Stock Exchange in 1979 with a Paid up Share Capital of N5.0 million.
“Ever since that day, there were only bonus issues, this Management never asked shareholders to put a single Penny; unlike most of the companies quoted on the Stock Exchange” Calvino said.
He asserts that very few shares changed hands over the years, “if we have 20 to 30 transactions in a year, it is a lot; so many shares of this company is held by the staff or their children, and we would like to see our company as a big family. And as a big family, we would hardly do anything to harm our blood” he affirms.
As at December 31, 2014, five (5) companies are in the process of voluntary delisting from the Nigerian Bourse, these include South African firm, Pinnacle Point Group Plc delisting due to liquidation problems and Africa Pharmaceutical Plc delisting as a result of non-compliance with post listing obligation.
While Poly Products Plc and Adswitch Plc are voluntarily delisting due to harsh economic climate and the Tourist Company of Nigeria Plc delisting as a result of Free Float deficiency.
