Greif Nigeria Plc has announced its plans to delist from the Nigerian Stock Exchange (NSE). The manufacturer of steel drums and plastic containers took the decision 11 months after it suspended its operation.
Greif Nigeria’s intention was disclosed in a statement published on the website of the NSE. The decision has not been finalised as the company will seek approval at its Extraordinary General Meeting slated for January 23, 2020.
Aside from delisting from the stock exchange, Greif Nigeria also plans to sell its assets in Nigeria for a price that will be determined by the company’s board. It will also recommend that the Register of Members and Transfer Books be closed from 23rd to 24th December 2019.
The statement read, “The company’s land and buildings known and designated as factory at No. 1, Alapata Road, Apapa, Lagos and residence at No. 3/5 Barracks Road, Apapa, Lagos be sold at a price and upon such terms and conditions negotiated and determined by the board.
“The company’s shares would also be delisted from the Nigerian Stock Exchange as the board has been authorised to take such steps or actions and to do all things as may be necessary to give full effect to the above-mentioned resolutions.”
Delisting request expected: Nairametrics had reported that Greif Nigeria was operating at a loss. It had been having sales problem, which it said didn’t improved. This led to the suspension of its operation.
The firm’s Chairman, Adebayo Olowoniyi, in the company’s 2018 full-year statements, said, “We have tried to navigate this difficult business terrain by recovering our costs through multiple price increases to our customers, cost reduction initiatives and improved efficiencies. However, we have not succeeded in that. We have lost our most important customer, halfway through the year and had to reduce prices to retain volumes, not fully recovering costs.”