…Investors intraday bets on Oando, Aradel
By Ngozi Nwatu
Ahead of a final delisting, equities market regulator, the Nigerian Exchange Limited ,NGX, has suspended trading on Flour Mills of Nigeria Plc shares, according to stockbrokers.
Today, the Nigerian Exchange Limited announced that trading in the shares of Flour Mills of Nigeria Plc has been suspended with effect from Monday, December 16, 2024.
This suspension has been implemented to facilitate the delisting of the company’s securities, in line with the approval granted by the NGX, Cowry Asset Limited told investors in an emailed note.
Stockbrokers said the measure is intended to ensure an orderly process and to prevent further trading activities as part of the delisting preparations.
Flour Mills of Nigeria Plc hereby notifies Nigerian Exchange Limited it received an offer from the majority shareholder Excelsior Shipping Company Limited to acquire all shares held by the minority shareholders in Flour Mills.
The transaction will be implemented by way of a scheme of arrangement between the company and the minority shareholders, in accordance with the provisions of Section 715 of the Companies and Allied Matters Act 2020 ,as amended.
Under the terms of the scheme, the minority shares ,being all the outstanding shares of Flour Mills not already held by Excelsior, will be acquired by Excelsior.
The core investor holds 2.59 billion shares, or 63 percent stake, in FMN, worth N142.8 billion as of September 24, 2024. Excelsior Shipping Company plans to buy out minority shareholders, offering them a N105.2 billion exit package.
At the end of the buyout, FMN would be delisted from the stock market. The deal has already received the approval of the Securities and Exchange Commission ,SEC.
Meanwhile, Oil and gas stocks have continued to gain investors’ attention, with Aradel Holdings and Oando Energy driving the momentum. In support, some banking names are also pushing higher during intraday sessions on the Nigerian Exchange.
Bargain hunting has heated up the All-Share index due to improved investors’ sentiment in the local bourse. At midday, the NGX All Share Index witnessed a positive trajectory, displaying a gain of 0.67%, Alpha Morgan Capital Limited told investors in an emailed note.
Stockbrokers attributed the bullish trend to the buying interest of investors in some mid- to high-capitalised stocks. Top performers include Ticker: ARADEL which has seen a maximum daily allowable price surge of 10.00%.
INTBREW has gained 9.90% during the early trading hours in the equities market, while OANDO is up by 5.95% after a strong weekly gain. FBNH comes back to the rally space with 1.89% price appreciation, while investment banking stock United Capital Plc, or Ticker: UCAP, has surged by 1.34%.
ZENITHBANK is already up by 1.14%, and WAPCO has gained 0.71%, with TRANSCORP doing 0.46% and UBA 0.30%. From behind, GTCO has seen a 0.09% increase in its market value.
