Following the delisting of Flour Mills of Nigeria Plc from the Nigerian Exchange (NGX), there are speculations the trend may continue into the year as four listed firms are said to follow the same path.
Other companies considering delisting include MRS Oil Nigeria Plc, Wapic Insurance Plc, International Energy Insurance Plc and Lafarge Africa Plc (WAPCO).
The renewed wave of exit has continued to threaten the stability of the capital market, serving as a source of worry for regulators and policymakers.
While Wapic Insurance and MRS announced the intention to delist last year, sources said Lafarge and International Energy Insurance may join the league. Lafarge’s parent company has concluded plans to exit the company by selling off its 83 per cent stake to a Chinese firm, Hauxin Cement, in a deal worth $1 billion.
The Guardian learnt that after the acquisition, a mandatory tender offer will be triggered, mandating minority shareholders to exit the company.
