Oil firm, 11 PLC, formally known as Mobil Oil Nigeria Plc, says it plans to delist its more than 360.592 million ordinary shares from the daily official list of the Nigerian Stock Exchange (NSE) by the end of the first quarter, in furtherance of a resolution passed at its last annual general meeting in October.
The company which made the disclosure in a statement on Tuesday, said it was to enable it explore strategic alliances and opportunities.
“The purpose of delisting is to enable the company explore strategic opportunities, alliances and collaborations that can bolster earnings and/or provide synergized benefits with little or no regulatory obligations,” the firm said.
Shareholders who do not consent to the exit proposal will be in the frame to sell their stakes at N213.90 per ordinary share, “being the highest price at which 11 Plc shares have traded, six (6) months preceding the notice of the AGM at which the resolution to delist was deliberated, as provided by the rules of the Nigerian Stock Exchange.”
The company said it will still maintain its public liability company status after delisting, even though its shares will no longer be eligible for trade on the bourse.
For the exit plan to materialise, both the Securities and Exchange Commission and the NSE have to give their approvals, after which dissenting shareholders will be settled and cease to be stockholders in the company.
“11 Plc shareholders will be able to elect to accept the Exit Consideration from February 1, 2021 to March 1, 2021,” the document said.
It added that the delisting would not affect the current employment contracts of staff and the composition of the board of directors.
Socony Vacuum Oil Company, the precursor of 11 Plc, started marketing operations in Nigeria in 1907 through the sale of Sunflower Kerosene.
It transformed to a limited liability company in 1951, the same year it adopted the name Mobil Oil Nigeria Limited. In 1978, it was quoted on the NSE, assuming the identity: Mobil Oil Nigeria Plc.