7-Up’s foreign investor moves to buy out Nigerian shareholders

The majority foreign core investor in Seven-Up Bottling Company Plc-Affelka SA, has launched an aggressive acquisition bid to buy all outstanding shares held by minority shareholders in the company.

Affelka S A is the majority core investor in 7-Up with total equity stake of 72.97 per cent.

A regulatory filing signed by the company secretary indicated that Affelka SA has informed the board of Seven-Up Bottling Company of the decision and already obtained the initial regulatory approval to acquire all the “outstanding and issued shares of seven-Up Bottling Company that are not currently owned by Affelka”.

Affelka is offering N112.70 per share for the 171.54 million ordinary shares of 50 kobo each held by the minority shareholders, representing 26.78 per cent of Seven-Up Bottling Company’s issued share capital. The bid price represents 15 per cent premium on the last traded share price of the company on August 9, 2017, the last business day prior to the date the proposal was received from Affelka SA by Seven-Up Bottling Company’s board.

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According to the proposal, the acquisition would be carried out through a scheme of arrangement under Section 539 of the Companies and Allied Matters Act (CAMA) and other applicable rules and regulations.

Already, Seven-Up Bottling Company has received the “No Objection” approval of the Securities and Exchange Commission (SEC). However, the scheme is still subject to the approval of the shareholders at a Court-Ordered Meeting as well as the approval of the Federal High Court.

The move by Seven-UP Bottling Company followed the pattern of its competitor-Nigerian Bottling Company (NBC), which had acquired minority shares and delisted from the Nigerian Stock Exchange (NSE) despite strong protests by Nigerian retail shareholders.

A fast moving consumer good (FMCG) company, 7-Up is the manufacturer and Nigerian franchise holder for several global soft drinks including its flagship-7-Up brand, Pepsi and Mirinda. Its other popular brands include Teem Lemon, Mountain Dew and aquafina. Incorporated in 1959, its shares were listed on the Nigerian Stock Exchange (NSE) in 1959.

The acquisition also implies that Seven-Up Bottling Company might be delisted from the NSE, ending its status as the only publicly quoted soft-drink company in Nigeria.

 

 

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