NSE LIVE! Stock Exchange delists three companies

In from Success Allantee…

As the Nigerian stock market opens today, the Nigerian Stock Exchange (NSE) will shut the regular secondary market against shareholders of three companies by delisting them from the daily official list.
The three companies- Nigeria Wire & Cable, Nigerian Sewing Machine Manufacturing and Stokvis Nigeria Plc, are being delisted for failure to restructure their operations to enhance corporate governance and ensure adequate disclosures and returns to shareholders.
The compulsory delisting will automatically remove the three companies, which have about 1.81 billion ordinary shares of 50 kobo each outstanding, from the trading engine and other trading cycles, processes and documents.
The NSE said the companies “failed to take any steps to regularize their listing status”, referring to the long-drawn absence of corporate results and information about the operations of the companies. The three companies had remained stagnant over the years.
Stokvis was last traded at 14 kobo, 72 per cent below its nominal value of 50 kobo. Nigerian Sewing Machine Manufacturing’s last trading price was 15 kobo, 70 per cent below its nominal value of 50 kobo while Nigeria Wire & Cable has been flat at its nominal value of 50 kobo.
The Ibadan, Oyo State-based Nigeria Wire & Cable is ironically being delisted shortly after the 20th anniversary of its listing on the Exchange. Incorporated in 1974, the electrical and telecommunications cables company was listed on the NSE in July 1995.
Nigerian Sewing Machine Manufacturing was incorporated in 1960 and listed on the Exchange in 1978. It engaged in the manufacturing and marketing of the popular Singer sewing machine, which earned it the widely recognised Singer Bus Stop on the Sango Ota axis of the Lagos-Abeokuta expressway, where its factory was located.
The Surulere, Lagos-based Stokvis Nigeria was also listed on the NSE in 1978, 21 years after it was incorporated in 1957. It initially engaged in distribution of technical equipment but later veered into commercial production of ice blocks and ice cubes.
The NSE had in November 2014, Stokvis, Nigerian Sewing Machine Manufacturing and Nigerian Wire and Cable and 15 other companies 12 months grace period to enable them kick-start necessary restructurings and comply with the listing requirements at the Exchange.

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During the 12-month period, the companies are required to file quarterly progress reports updating the Exchange about their activities and various steps they are taking towards fulfilling their post listing obligations.

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