Avon Crowncaps suspends trading on the Nigerian Stock Exchange

Avon Crowncaps & Containers Nigeria Plc, makers of screwcaps, metal containers and steel drums for a diverse industry including beverage companies (soft drinks producers, juice and dairy makers, brewers and spirits producers) among others announced on Thursday that it was suspending the trading of its shares on the Nigerian Stock Exchange (NSE) effective 31 August 2017.

The company which has seen its fortunes decline over the last five years had sought to buy out its minority shareholders who hold about 21% of the firm’s shares so it can be taken private and restructured.

Avon Crowncaps is majorly controlled by Wilko Corporation, a private company registered in the Bahamas.

The company cites macroeconomic conditions, tight liquidity, high interest rates, cheaper substitutes from Asia and Europe and a trend towards rigid and flexible plastics for its woes. The firm also blamed the security situation in some parts of the country and delays in receiving payments from customers to have negatively impacted its performance.

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