Seven-Up Bottling Company Plc. shareholders on Thursday approved the Scheme of Arrangement for the acquisition of 26.8 per cent shares by Affelka South Africa.
The shareholders gave the approval at the Court-Ordered meeting convened at the instance of the Federal High Court in Lagos.
Affelka S.A. with the approval would now increase its ownership of the company to 100 per cent by acquiring all the outstanding and issued shares, previously held by the minority shareholders.
The majority shareholders would make a payment of N125 per scheme share to each shareholder in consideration for the transfer of the shares.
The payment represented a 22.6 per cent premium on the last traded share price of Seven-up on Jan, 9, and a 27.6 per cent premium on the share price as at close of Aug. 9, 2017, being the last business day prior to the date the initial proposal was received from Affelka.
Faysal El-Khalil, the company’s Chairman, said at the meeting that the Scheme would create considerable benefits and opportunities for all stakeholders.
El-Khalil said that Affelka had assured of long-term commitment to the company and Nigeria in general.
“We believe that the Scheme will create considerable benefits and opportunities for all stakeholders of Seven-Up Bottling Company and will serve 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.
Boniface Okezie, the National Coordinator, Progressive Shareholders Association of Nigeria, told the News Agency of Nigeria (NAN) that the shareholders approved the scheme because of the price review.
Okezie said that the shareholders had no choice than to approve the arrangement since the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) have their consent without fighting for the minority shareholders.
He said that the majority shareholder reviewed the price to N125 per share from N112 due to minority shareholders stance and intervention for better treatment.
Okezie said that the capital market regulators SEC and NSE had collected their fees without fighting for them.
He called on the company to stick to the promises by ensuring that no job would be loss in spite delisting from the exchange.
NAN reports that Chapel Hill Denham Advisory Ltd., acted as Financial Advisers and Aelex Partners, Solicitors to the company.