ARBICO Plc has announced its decision to voluntarily delist from the Nigerian Exchange Limited as revealed in a recent notice of an Extraordinary General Meeting (EGM) scheduled for March 21, 2024.
According to the company, the meeting, set to take place at Park Inn by Radisson in Abeokuta, Ogun State, will address significant resolutions regarding the company’s future direction.
On the agenda for the EGM, the company intends to deliberate a special resolution for the voluntary delisting of Arbico Plc’s shares, contingent upon obtaining necessary regulatory approvals and meeting all regulatory requirements.
This step indicates a strategic pivot for the company, potentially impacting its stakeholder relations, market presence and regulatory landscape.
Following the approval of this delisting, the second resolution focuses on the execution phase, where the company’s registrars will distribute the scheme consideration to all shareholders, in accordance with the decisions made during the court-ordered meeting and sanctioned by the Federal High Court.
The move by Arbico Plc could signify a new phase for the company, potentially aiming for greater flexibility and operational efficiency away from the public market’s scrutiny.
The decision also comes at a time when the company has reported significant financial challenges, with a notable shift from profitability in previous years to a substantial loss in the latest fiscal year.
The company recently announced an increase in revenues, reaching N19.5 billion, up from N8.45 billion in the previous year.
Despite the impressive growth in sales, Arbico Plc faced financial challenges, recording a net loss of N1.49 billion compared to a profit of N181.81 million a year earlier. This reflected a shift from profitability to a notable loss within the fiscal year. The company also has a negative reserve of N2.2 trillion.
The delisting may offer Arbico Plc a pathway to restructuring and refocusing its business model to navigate through its current financial turbulence.
Abrico’s majority shareholder is R28 Ltd with about 69.97 percent shareholding. The company is owned by Nigerian billionaire, Chief Kesington Adebutu. AOG Ltd owns 10 percent while the balance 20 percent is owned by Nigerians.
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