Courteville Finally Delist from NGX

Kayode Tokede

Courteville Business Solutions Plc has finally listed from the Nigerian Exchange Limited (NGX) coming months after shares held by minority investors were taken over by Bows Nigeria Limited, the company’s majority shareholder.

The management of the NGX in a notice said, We refer to our market bulletin of 17 October 2023 with reference Number: NGXREG/LRD/MB49/23/10/17 wherein the Market was notified of the full suspension placed on trading in the securities of Courteville Business Solutions Plc (Courteville) in preparation for the delisting of the Company.

“Following the approval of the Company’s application to delist its entire issued share capital from the Nigerian Exchange Limited (NGX), please be informed that the entire issued share capital of Courteville were on November 10, 2023, delisted from the Daily Official List of NGX.”

In February 2023, Bows received approval from the Securities and Exchange Commission (SEC) to acquire 1.17 billion minority shares of Courteville — equivalent to a 32.99 percent stake — at N0.48 kobo per share.

The acquisition increased Bows’ stake in Courteville from 67.01 per cent to 100 per cent.

The shares were acquired after a mandatory takeover bid, following the approval for the delisting of Courteville’s securities from the Nigerian stock exchange.

It stated that the resolution for the delisting was passed by the shareholders at the 17th annual general meeting of Courteville on July 26, 2022.

Other companies to be delisted this year include, Capital Hotel Plc, Ardova Petroleum Plc, GlaxoSmithKline (GSK) Plc, PZ Cusson Plc, Oando Plc, and Coronation Insurance Plc.

A total of N205.002 billion is expected to be wiped from the NGX equities capitalization following the planned delisting of GlaxoSmithKline (GSK), PZ Cusson, Oando, Coronation Insurance, and Capital Hotel.

The delisting of GSK, which announced its intention to shut down its operation in Nigeria, will cost the market N15.49 billion in market value.

GSK, had early last month, announced plans to cease operations in Nigeria without stating reasons for its decision. The company had, in the regulatory filing to announce the planned exit, said that it plans to cease operation after evaluating the options for moving to a third-party distribution model for its pharmaceutical products.

Economy experts have, however, linked the company’s decision to scarcity of foreign exchange (Forex) and the forex losses incurred by most companies following the devaluation of the Naira.

In its H1 2023 report, the company lamented that the business environment continued to be very challenging with forex availability affecting its ability to settle foreign currency-denominated trade payables with product suppliers.

“As a result, it remained difficult to maintain consistent supply to the market,” GSK Nigeria added.