Ashaka cement plc have announced their voluntary decision to be delisted from the Nigerian Stock Exchange (NSE), due to violation of the exchange free float deficiency provision of 20 percent.
The company’s board of directors made this known in a statement posted on the NSE website.
A part of the statement read “The Board of Directors of Ashaka Cement Plc has opted for a voluntarily delisting of the company from the NSE in violation of the Exchange’s Free Float Deficiency provision of 20 per cent.’’
Lafarge Africa Plc currently holds 84.97 per cent of Ashaka Cement, bringing the free float that was tradable on the NSE to 15.03 per cent which is against the stipulated 20 percent.
Shareholders of Ashaka Cement, who have exercised their option to exit the company prior to the delisting, would receive 57 Lafarge Africa shares for 202 Ashaka shares.
They will also receive a N2 per share cash consideration.
Also, shareholders who do not want to remain in the unlisted Ashaka Cement, would be entitled to receive a payment of N15.74 per share from the company.
The company opted for voluntary removal so as to avoid NSE enforcement action of regulatory delisting because the free float deficiency was not likely to be remedied.
It had decided to operate as an unlisted entity.