7UP ‘delisting: NSE places shares on full suspension

Following shareholders of 7up Bottling Company Plc recent approval of the new offer scheme for buyout of the company’s minority shareholders, the company’s shares have been placed on full suspension by the Nigerian Stock Exchange (NSE) subsequent to eventual delisting.

Seven-Up bottling company Plc is a leading independent manufacturer and distributor of the well-known and widely consumed brands of soft drinks in Nigeria. The Company’s brands include Pepsi, 7UP, Mirinda, Teem, Mountain Dew and Aquafina Premium Water, which it produces and markets across the country.

According to the NSE, full suspension of trading in shares has been placed on the shares of 7-Up Bottling Company Plc with effect from the Friday, 12th of January, 2018, 24 hours to securing shareholders’ approval.

The NSE further disclosed that the suspension is for the purpose of determining the shareholders who will qualify to receive the Scheme consideration following the decision of the company’s majority shareholder, Affelka S.A (“Affelka”), to acquire all outstanding and issued shares of 7-Up Bottling Company that are not currently owned by Affelka.

The company’s shareholders passed a resolution to this effect at the Court Ordered Meeting of the company held on Thursday, 11 January 2018. The Scheme will result in the voluntarily delisting of 7-Up Bottling Company Plc from the Daily Official List of The Exchange

Shareholders of Seven-Up Bottling Company Plc in Lagos Thursday, approved the Scheme of Arrangement by which the majority shareholder, Affelka S.A. would acquire the outstanding 26.8 per cent shares of the company.

The shareholders gave an overwhelming approval at the Court-Ordered Meeting that was convened at the instance of the Federal High Court. The meeting was held at Eko Hotel, Lagos.

Following the shareholders consent, Affelka S.A. will now increase its ownership of the company to 100% by acquiring all the outstanding and issued shares, previously held by the minority shareholders. In consideration for the transfer of the shares, a payment of N125.00 per Scheme Share will be made to each shareholder.

This payment represents a 22.6 per cent premium on the last traded share price of Seven-Up on January 9, 2018 and a 27.6% premium on the share price as at close of August 9, 2017 being the last business day prior to the date the initial proposal was received from Affelka.

Chapel Hill Denham Advisory Limited acted as Financial Advisers and Aelex Partners, Solicitors to the company.

Commenting at the meeting, Mr. Faysal El-Khalil, O.O.N, Chairman, Seven-Up Bottling Company Plc, said: “We believe that the Scheme will create considerable benefits and opportunities for all stakeholders of Seven-Up Bottling Company Plc.; and will serve to protect minority Shareholders from a continuous erosion of value. Furthermore Seven-Up Bottling Company Plc. is again assured of Affelka’s long- term commitment to the Company and Nigeria.’’

Bonny Amadi