NSE suspends 11 over delisting

The Nigerian Stock Exchange (NSE) yesterday suspended trading
and price movement on 11 Plc, formerly known as Mobil Oil Nigeria
Plc.

The full suspension was sequel to the ongoing delisting of the
shares of the downstream oil and gas company.

According to the Exchange, the suspension was necessary to
prevent trading in the shares of the company following NSE’s
approval of the company’s voluntary delisting application.

“The suspension is preparatory towards the eventual delisting of
the company from the Daily Official List of Nigerian Exchange
Limited,” NSE stated.

11 has said the proposed delisting of its shares will enable it
to implement strategic plans that will improve the overall
performance of the downstream oil company.

Explaining the rationales for the delisting to shareholders, 11
stated that it will enable the company to explore strategic
opportunities, alliances and collaborations that can bolster
earnings and synergised benefits with little or no regulatory
obligations.

According to the company, delisting will lead to greater focus
and impact on the performance of its performance while it will not
have any material changes on its operations, staff and board
compositions.

“11 Plc will be able to focus on revenue generation, consider
strategic opportunities, alliances and collaborations; and
tremendously shift from regulatory, administrative, and financial
reporting regulations that companies listed on the Nigerian Stock
Exchange must adhere to,” 11 stated.

The company stated that while its shares will no longer be
available for trading on the NSE upon delisting, it will continue
to operate as an unlisted public company. This raises possibility
of its shares being listed and traded on the NASD OTC Securities
Exchange –the over-the-counter platform for trading of unlisted
public companies.

The company noted that the delisting will not have any impact on
the existing employment contracts of its staff as well as the
composition of the board of directors.

Shareholders of 11 had at their annual general meeting (AGM) on
October 14, 2020 approved a resolution to delist the entire 360.6
million ordinary shares of 50 kobo each of 11 from the NSE.

Under the delisting arrangements, shareholders who prefer to
remain with the company as unlisted public company will continue
with the company but those who indicate their dissent will be paid
exit consideration. Dissenting shareholders shall be paid off.

Upon the expiration of the March 01, 2021 deadline for dissent,
11 will set aside sufficient funds and provide evidence of funding
to the Exchange, to demonstrate that it has the financial resources
to settle any dissenting shareholder.

The interest of dissenting shareholders shall be bought by the
company for a consideration of N213.90 per ordinary share, being
the highest price at which 11 shares have traded, six months
preceding the notice of the AGM at which the resolution to delist
was deliberated, as provided by the rules of the NSE.

Once the transaction is approved by both the Securities and
Exchange Commission (SEC) and the NSE, the shares of the company
shall be expunged from the daily official list of the Exchange.
Furthermore, all dissenting shareholders would be settled and cease
to be shareholders of 11.

The board of 11 said the delisting have taken into consideration
the benefits of shareholders based on the terms and conditions of
the proposed delisting.

The Nigerian Stock Exchange (NSE) yesterday suspended trading
and price movement on 11 Plc, formerly known as Mobil Oil Nigeria
Plc.

The full suspension was sequel to the ongoing delisting of the
shares of the downstream oil and gas company.

According to the Exchange, the suspension was necessary to
prevent trading in the shares of the company following NSE’s
approval of the company’s voluntary delisting application.

“The suspension is preparatory towards the eventual delisting of
the company from the Daily Official List of Nigerian Exchange
Limited,” NSE stated.

11 has said the proposed delisting of its shares will enable it
to implement strategic plans that will improve the overall
performance of the downstream oil company.

Explaining the rationales for the delisting to shareholders, 11
stated that it will enable the company to explore strategic
opportunities, alliances and collaborations that can bolster
earnings and synergised benefits with little or no regulatory
obligations.

According to the company, delisting will lead to greater focus
and impact on the performance of its performance while it will not
have any material changes on its operations, staff and board
compositions.

“11 Plc will be able to focus on revenue generation, consider
strategic opportunities, alliances and collaborations; and
tremendously shift from regulatory, administrative, and financial
reporting regulations that companies listed on the Nigerian Stock
Exchange must adhere to,” 11 stated.

The company stated that while its shares will no longer be
available for trading on the NSE upon delisting, it will continue
to operate as an unlisted public company. This raises possibility
of its shares being listed and traded on the NASD OTC Securities
Exchange –the over-the-counter platform for trading of unlisted
public companies.

The company noted that the delisting will not have any impact on
the existing employment contracts of its staff as well as the
composition of the board of directors.

Shareholders of 11 had at their annual general meeting (AGM) on
October 14, 2020 approved a resolution to delist the entire 360.6
million ordinary shares of 50 kobo each of 11 from the NSE.

Under the delisting arrangements, shareholders who prefer to
remain with the company as unlisted public company will continue
with the company but those who indicate their dissent will be paid
exit consideration. Dissenting shareholders shall be paid off.

Upon the expiration of the March 01, 2021 deadline for dissent,
11 will set aside sufficient funds and provide evidence of funding
to the Exchange, to demonstrate that it has the financial resources
to settle any dissenting shareholder.

The interest of dissenting shareholders shall be bought by the
company for a consideration of N213.90 per ordinary share, being
the highest price at which 11 shares have traded, six months
preceding the notice of the AGM at which the resolution to delist
was deliberated, as provided by the rules of the NSE.

Once the transaction is approved by both the Securities and
Exchange Commission (SEC) and the NSE, the shares of the company
shall be expunged from the daily official list of the Exchange.
Furthermore, all dissenting shareholders would be settled and cease
to be shareholders of 11.

The board of 11 said the delisting have taken into consideration
the benefits of shareholders based on the terms and conditions of
the proposed delisting.