Nigerian Stock Exchange suspends trading of Seven-Up shares

The Nigerian Stock Exchange (“NSE”) announced on Friday that it was permanently suspending the trading in shares of Seven-Up Bottling Company Plc (“7-Up Bottling Company Plc”) on the floor of “The Exchange” as it tries to determine the shareholders who will receive the Scheme Consideration following the company’s majority shareholder, Affelka S.A (“Affelka”), buyout of the remaining shares of minority shareholders it does not already own.

In a note published on Friday, 12 January, the Exchange said that “Dealing Members are hereby notified that trading in the shares of 7-Up Bottling Company Plc has been placed on full suspension on the NSE with effect from today, 12 January 2018.”

Seven-Up shareholders passed a resolution at a Court-Ordered Meeting of the company held on Thursday, 11 January 2018 to transfer 26.8% minority shares to Affelka, increasing its holding in the firm to 100%.

The Scheme of Arrangement requires Affelka to pay minority shareholders of Seven-Up ₦125 Per Share for the remaining 171,542,574 million shares, a 22.6% premium to the last traded share price of the company on 9th January 2018, and a 27.6% premium to the price on 10th August 2017 which was the last business day prior to the date the initial proposal was received from Affelka.

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.

“Furthermore, Seven-Up Bottling Company Plc is again assured of Affelka’s long term commitment to the company and Nigeria,” he said.

On 30th November, Seven-Up announced that it had received an offer from Affelka to acquire the remaining shares of minority shareholders following mounting losses and share price decline over the last few years caused by the recession and competition from both existing and new entrants into the market. The company said it wanted to take the firm private for restructuring and enhance its product portfolio so it can compete with its industry rivals, both existing and new entrants.

The statement released by the Exchange on Friday said that the “Scheme” will result in the voluntarily delisting of 7-Up Bottling Company Plc from the Daily Official List of The Exchange.

Seven-Up is Nigeria’s second largest soft drinks company and holds the franchise for PepsiCo brands such as Pepsi, 7-Up, Mirinda, Mountain Dew and others. The company was first incorporated in Nigeria in 1959 and was listed on the Nigerian Stock Exchange in 1978.

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