Nigeria: Ashaka Cement to be delisted from NSE

The Board of Directors of Ashaka Cement Plc have opted for a voluntarily delisting of the company from the Nigerian Stock Exchange (NSE) in violation of the exchange’s Free Float Deficiency provision of 20 per cent.

According to the directors, Lafarge Africa Plc currently holds 84.97 per cent of Ashaka Cement, bringing the free float that is tradable on the NSE to 15.03 per cent as against 20 per cent stipulated by the exchange.

Shareholders may exit the company within the regulatory 90 days period prior to the official delisting of the company by either trading their shares on the NSE through their nominated stockbroker, or receive 57 shares of Lafarge Africa Plc in exchange for 202 Ashaka Cement shares, and a cash consideration of N2 per every AshakaCem exchanged, reports This Day.

Speaking at the EGM, the Vice-Chairman of Ashaka Cement, Edith Onwuchekwa, said: “The voluntary delisting will not occasion loss of shares held by shareholders. As such shareholders may retain their membership in the unlisted company if they so wish. Post the delisting, AshakaCem will continue to operate as a legal entity with its own board of directors.”

Under the delisting and settlement of consideration, minority shareholders in AshakaCem will be offered benefits, including revenue diversification by geography as a result of Lafarge Africa’s operations in Nigeria, South Africa and Ghana. This is in addition to revenue diversification by plant location, due to wide spread operations across the North East, South East and South West regions of Nigeria.