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The Nigerian
Bottling Company (NBC), bottlers of Coca Cola and other drinks, on
Tuesday, announced plans to delist its shares at the Nigerian Stock
Exchange.

Management of the
company said in a statement to the Exchange that it “wishes to formally
inform the Nigerian Stock Exchange of a proposed scheme of arrangement
between the company and its members, involving 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.” Coca-Cola Hellenic currently owns 66.4 per cent of the
total share capital of NBC. The company, which was listed 37 years ago,
said an application will consequently be made for the delisting of the
company’s shares from the Daily Official List of the Exchange. “The
company will also be re-registered as a private company in accordance
with the relevant provisions of the Companies and Allied Matters Act,”
the statement said.

Market confidence

Meanwhile, the
Exchange spokesperson, Wole Tokede, said the plan “does not have
anything to do with loss of confidence in the capital market.” He said
that the Coca-Cola producing company has its reasons for delisting,
adding that it is a choice of a company to either be listed on the
Exchange platform or not. “What they plan to do is not only happening
here, it is also happening in Greece too,” he said. “But until we see
the scheme of arrangement, the NSE cannot be specific on the delisting
plan.” Adeyanju Olomola, the company’s spokesperson, said the delisting
plan “is not as a result of loss of confidence in the capital market
but an investment plan of the company with Coca-Cola Hellenic which
will benefit the Nigerian economy at large.”

Compensation for shareholders

In the meantime,
the NBC said that the proposed structure envisaged a cash consideration
to be paid as compensation to shareholders for the cancellation. The
proposed scheme includes a cash payment of N43 per share as
consideration to the minority shareholders. “The proposed price would
provide all minority shareholders with a premium of 37.4 per cent to
the 30-day average closing price and 43.2 per cent to the closing price
of NBC shares on the NSE on December 13 which was N30.03 per NBC
share,” said the statement.

The proposed scheme is subjected to the approval of the shareholders
at a meeting of the company, convened on the order of the Federal High
Court. This will only become binding and effective upon obtaining the
approval of not less than three- quarters in value of shares held by
those present and voting, in person or by proxy, at the said meeting
and the subsequent sanction of the court. If approved, the transaction
is expected to be completed during the second quarter of 2011, at which
time NBC would also be delisted from the Exchange. The value of the
proposed transaction is approximately N18.612 billion.