NSE suspends trading on 7UP as investor buys out Nigerian

The Nigerian Stock Exchange (NSE) has suspended trading in the shares of 7UP Nigeria Plc. The suspension is consequent upon a motion passed by minority shareholders approving a takeover bid by Affleka holdings.

This will lead to the delisting of the company from the NSE. Delisting a stock means it will no longer trade on the Nigerian Stock Exchange.

Recall that shareholders of Seven-Up Bottling Company Plc on Friday approved a plan by the majority shareholder, Affelka SA to acquire the outstanding 26.8 per cent shares held by the minority shareholders.

At a court-ordered meeting in Lagos, shareholders approved the scheme of arrangement for the acquisition. With the ongoing acquisition process, Affelka SA will increase its ownership of the Nigerian soft-drink company to 100 per cent 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 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 per cent 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.

Chairman, Seven-Up Bottling Company Plc, Mr. Faysal El-Khalil said the acquisition will create considerable benefits and opportunities for all stakeholders of the company while also helping to protect minority shareholders from a continuous erosion of value.
Chapel Hill Denham Advisory Limited acted as Financial Advisers and Aelex Partners, Solicitors to the Company.

In a notice sent to the Nigerian Stock Exchange (NSE) this week, Affelka SA the majority shareholder in 7-UP Plc revised its offer for all the shares it does not own to N125 per share.

The revised offer was at a 22.6% premium to the last traded share price of the company on January 9 2018 and a premium to the 27.6% premium to the August 10, 2017 which was the last date prior to the announcement of the proposal by Affleka.

Going private will enable the company raise capital without the regulatory bureaucracy, or seeking approval from shareholders. 7UP has been racked with losses for several years running.

Shareholders that haven’t sold their shares will be able to do that on the NASD, which is the exchange for unlisted securities.

7-UP Plc was incorporated as a private limited liability company on 25th June, 1959 under the name Seven‐Up Limited by Mohammed El-Khalil. On 16th May, 1960, the name was changed to Seven‐Up Bottling Company Limited and in 1978 it became a public company. 7-UP Plc was listed on the Nigerian Stock Exchange on June 1st, 1986.