Stock exchange delists four companies

The Nigerian Exchange (NGX) Limited has delisted Evans Medical Plc, Nigerian-German Chemical Plc, Roads Nigeria Plc and Unic Diversified Holdings Plc over poor corporate governance and failure to comply with extant rules at the stock market.

The four companies were removed from the daily official list of the NGX with effect from Monday, June 14, 2021. The companies were delisted under the compulsory delisting window of the Exchange.

According to the Exchange, the delisting of the companies was approved by the board of NGX Regulation Limited (NGX RegCo) on Wednesday, April 21, 2021, in line with the regulatory delisting process of NGX and endorsed by the chief executive officer of NGX as a result of persistent non-compliance with the post-listing rules of the Exchange.

The companies had been placed under delisting watch-list due to recurring failures to comply with international best practices and corporate governance rules at the market.

The delisting watch-list of the Exchange consists of companies with serious infractions that require considerable organisational changes to comply with the extant rules at the market.

The NGX operates two delisting windows-voluntary and compulsory delisting. Under voluntary delisting, quoted companies can opt to delist their shares from the Exchange due to various reasons including mergers and acquisitions, restructuring and private interests subject to fulfilment of the delisting rules and requirements.

Under the compulsory delisting window, the NGX may opt to delist companies that have failed repeatedly to meet extant rules and best practices in line with the Exchange’s commitment to protect investors and ensure that listed companies comply with global best practices.

Compulsory delisting is usually done pursuant to clause 15 of the General Undertaking, Appendix III of the Rule Book of The Exchange, which deals with the post-listing requirements and sanctions.

The delisting process of the companies had started more than three years ago with initial notice and demand for compliance with extant rules, especially relating to the timely submission of financial statements and periodic reports.

The authorities at the Exchange had continuously engaged the companies with the hopes that they would regularise their operations but they had failed to make any convincing move to comply with listing requirements.