Affelka SA, the foreign majority shareholder in Seven-Up Bottling Company (7-Up) Plc has secured the crucial vote to proceed with its acquisition of outstanding shares held by minority shareholders in the soft-drink bottling company.
At the court-ordered meeting in Lagos, shareholders buckled under pressure to approve bid by Affelka SA, after the foreign core investor increased its bid price by 10.9 per cent to N125 per share. Affelka had on Wednesday January 10 increased its bid price by 10.9 per cent to N125 in a last-minute maneuvering ahead of the court-ordered meeting.
Affelka SA had launched a bid to buy all outstanding shares held by minority shareholders in the company. Affelka had offered 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 new bid price of N125 represents 27.6 per cent premium on the last traded share price of the company on August 10, 2017, the last business day prior to the date the proposal was received from Affelka SA by Seven-Up Bottling Company’s board.
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.
The court-ordered meeting, ordered by the Federal High Court, followed the approval of the board of Seven-Up and the receipt of a “No Objection” approval from the Securities and Exchange Commission (SEC).
With this, 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.
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.
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