The Nigerian Stock Exchange has removed Great Nigeria Insurance Plc from its daily official list.
In a statement signed by the Head, Listings Regulation Department, NSE, Godstime Iwenekhai, the NSE described the delisting as voluntary, saying the entire issued share capital of the company was delisted on request from the company.
In an explanatory note, to shareholders on its voluntary delisting, the company said on December 24, 2018, that over the last five years, there had been little or no trading activity on the shares held by the minority shareholders.
It said its listing on the Exchange had brought no benefit to it or its shareholders.
The note read in part, “Shareholders are not benefitting from the continued listing as they are not getting any exit opportunity and their investments have been locked up as they find it difficult to dispose of their shareholding.
“Neither has the company benefited from listing on the Exchange as the company’s shares continue to trade at a significant discount to the intrinsic value. Moreover, the company is bearing unnecessary cost in complying with its listing obligations.”
The company stated that the voluntary delisting would enable the directors of the company to exercise a regulatory provision that would shield it from any enforcement of action that the exchange might effect, such as the outstanding free float deficiency.
It added that through the delisting process, it would be providing an exit opportunity to minority shareholders that did not want to remain in an unlisted company.
The NSE said, “Further to our market bulletin of December 13, 2018, notifying dealing members of the approval of the application filed by MBC Securities Limited on behalf of Great Nigeria Insurance Plc for the voluntary delisting of the entire share capital of GNI, please be informed that the entire issued share capital of GNI were today, January 25, 2019, delisted from the daily official list of the Nigerian Stock Exchange.”
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