NSE suspends trading on Avon Crown

Coy to be delisted
In pursuant to scheme of merger between Avon Crowncaps & Containers Plc and majority of equity holders of the company, Wilko Corporation, the Nigerian Stock Exchange (NSE) has suspended trading on the company’s share, a move that may eventually lead to delisting.

The NSE, in a statement signed by Acting Head, Listings Regulation Department, Mr. Godstime Iwenekhai notified dealing members of the exchange on the prevailing halt on any transaction on the shares of the exchange, commencing 31 August 2017.

“Dealing Members are hereby notified that trading on the Shares of Avon Crowncaps & Containers (Nig.) Plc (‘’the Company’’) on the Floor of The Nigerian Stock Exchange (“The Exchange”) has been suspended effective today, 31 August 2017” said NSE.

The exchange said that the trade suspension is in compliance with the approved Scheme of arrangement between the Company and holders of its fully paid ordinary shares which will lead to the voluntary delisting of the company from the official list of The Exchange.

Daily Times Nigeria recalls that Wilko Corporation, a private company incorporated in the Bahamas, holds majority shares in Avon Crowncaps.
In a notice to the Nigerian Stock Exchange, NSE, through its stockbrokers, CSL Stockbrokers Limited, Avon Crowncaps said the restructuring proposal, will involve the acquisition of the entire141.16 million ordinary shares of 50 kobo each belonging to the minority shareholders, which represents 20.64 percent of the company’s issued share capital.
The company said that Wiko’s investment makes Avon wholly owned subsidiary of Wilko. According to the company, the acquisition of the minority shareholding by Wilko was effected by way of a Scheme of Arrangement ‘under Section 539 of the Companies & Allied Matters Act, Cap C20, Laws of the Federation of Nigeria, 2004’ and was endorsed by shareholders.
The cancellation of the scheme shares and issue of new Avon Crowncaps shares to Wilko will result in the delisting of Avon Crowncaps shares from the Daily Official List of the Exchange, the statement said.

The statement added that in consideration of the cancellation, holders of the scheme shares will receive N1.90 for each share given up. Avon Crowncaps and Containers plc is engaged in the manufacturing of crowncaps and various other types of caps and covers, containers and other similar items of metallic products. The company has two wholly owned subsidiary companies: Fine Chemicals Nigeria Limited and Globe Packaging Industries Limited.