11 Plc, formerly Mobil Oil Nigeria Plc, has disclosed plans to delist its shares from the Nigerian Stock Exchange (NSE) by the end of the first quarter (Q1) 2021.
Shareholders of the company had, at the Annual General Meeting (AGM) in October 2020, passed a resolution for the delisting plan. The company in its regulatory filing, Wednesday, explained that the delisting would enable it to explore strategic opportunities, alliances and collaborations that could bolster earnings and/or provide synergised benefits with little or no regulatory obligations. Shareholders who do not consent to the exit proposal will be in the frame to sell their stakes at N213.90 per ordinary share.
“It is the highest price at which 11 Plc shares have traded, six months preceding the notice of the AGM at which the resolution to delist was deliberated, as provided by the rules of the Nigerian Stock Exchange,” the company said in the notice. The company explained that it would still maintain its public liability company status after delisting, even though its shares will no longer be eligible for trade on the NSE. “11 Plc shareholders will be able to elect to accept the exit consideration from February 1 to March 1,” the document said. It added that the delisting would not affect the current employment contracts of staff and the composition of the board of directors.
The delisting, however, is still subject to approvals by both the Securities and Exchange Commission and the NSE. Socony Vacuum Oil Company, the precursor of 11 Plc, started marketing operations in Nigeria in 1907 through the sale of Sunflower Kerosene. It transformed to a limited liability company in 1951, the same year it adopted the name Mobil Oil Nigeria Limited. In 1978, it was quoted on the NSE, assuming the identity— Mobil Oil Nigeria Plc.
– Vanguard News Nigeria