Nigeria bourse delists Seven-Up from trading on the exchange

The company is about to be transferred to the Affelka – an investment firm of the Lebanese El-Khalil family, in a $70 million buyout bid.

The Nigerian Stock Exchange (NSE) has approved the voluntary delisting of Seven-Up Bottling company from the exchange to allow a takeover bid from its majority shareholders.

Trading on the shares of the company was suspended in January 2018, and its voluntary delisting was effected last week to allow for the structuring of the soft drink bottlers.

In August 2017, the Affelka – an investment firm of the Lebanese El-Khalil family, approached the company with a $70 million buyout bid. This is after the company continuously post losses and putting it in a stressed financial situation.

Six years ago, Coca-Cola was also delisted by NSE in a $136 million buyout deal towards expanding the business and fending off competition.

Last month, majority shareholders approved this deal which is also aimed at restructuring the 7-Up, Pepsi and Mirinda distributor.

Nigerian soft drinks market is recently hit by slow demand which is occasioned by the weak economic growth of the country. Also, the forex crisis in the country also stifled raw material imports and thus, worsening the financial position of the company.

The shares of the company were last traded at N101.97 per share and valued at N65.32 billion ($214 million).

Source: Pulse. Ng