Investors lose N9.4 billion, as NSE delists 4 companies
Investor’s monies amounting to N9.4 billion have been lost forever following the recent delisting of four companies from the Nigerian Stock Exchange (NSE) Daily Official List.
On the first trading day in the month of May, the NSE delisted companies Beco Petroleum Products Plc, MTECH Communications Plc, MTI Plc and UTC Nigeria Plc.
The NSE said the delisting became effective May 2nd 2017, following approval by the Quotations Committee of the National Council of The Nigerian Stock Exchange (QCN) on Friday, 24 February 2017.
According to a report obtained by our correspondent at the weekend a breakdown of the losses incurred by investors show that investors in MTECH Communications has the largest share of the loss.
Mtech’s total value/ Market Cap stood at N4.5 billion as at date delisted. The NSE delisted 4.96 billion shares of MTECH at unit price of 91 kobo per share.
The delisting 4.89 billion units of MTI Plc at 50 kobo each amounted to a total loss of N2.45 billion, while 3.72 billion units of Beco Petroleum product’s shares with a unit price of 50 kobo per share also resulted in a loss of N1.9 billion.
For UTC Nigeria Plc 1.23 billion shares of 50 kobo each were delisted, representing a loss of N616.7million by investors.
The NSE stated that the delisting was pursuant to clause 15 of the General Undertaking, Appendix III of the Rule Book of The Exchange, 2015-Issuers’ Rules, which deals with the post-listing requirements and sanctions.
The delisted four companies had repeatedly failed to meet corporate governance standards set by the Exchange, which involves timely disclosures and accurate rendition of operational and financial accounts as well as other corporate governance issues.
The Daily Times reports that the Exchange continuously engages companies facing challenges with the hopes that they would regularise their operations.
The NSE recently announced the restructuring of Champion Breweries and voluntary delisting of Ashaka Cement as an outcome of such engagements to encourage compliance.
