Daar Communications Plc is leading 20 other companies in a scramble to avoid being delisted from the Nigerian Stock Exchange, it has been gathered.
The Nigerian Stock Exchange had in June served a notice of delisting on 21 companies, including Daar Communications, Big Treat Plc and UTC Plc for failing to file quarterly and annual financial statements as required under the listing rules.
Starcomms Plc, IPWA Plc, Nigeria Wire and Cable Plc, Afroil Plc and Goldlink Insurance Plc were also affected.
Stockvis Plc, Nigeria Sewing Machines Plc, Jos International Breweries Plc, Capital Oil Plc and Golden Guinea Plc were slated to be removed from the Exchange for failing to regularise their listing status after being given time to do so.
The NSE explained in the notice, “The Exchange has decided to delist these entities because of their failure to file quarterly and annual financial statements as required under the listing rules. This regulatory action is necessary in order to protect the investing public from trading in securities of entities with no current information regarding their financial status.
“Please note that this serves as a notice of delisting and the entities will be delisted effective three months from the date of this notice.”
Our correspondent, however, gathered that with the three months’ period set by the Exchange to conclude the delisting process drawing to a close, some of the companies were making moves to meet their obligations and remain listed on the Exchange.
In this regard, Daar Communications appears to be in the lead as the company on September 4 submitted its results for the financial year ended December 2012. It is the first of the affected companies to have had a fresh result published by the Exchange since the delisting notice was served on the companies. FTN Cocoa Processors Plc followed suit on September 24, submitting its results for Q1 2014 and half-year 2014.
The management of Goldlink Insurance Plc, which is also affected, has issued a statement saying it was working vigorously to address all issues of statutory compliances and restore the company to the path of normalcy.
Among other things the statement said, “As part of its mandate, the management engaged a firm of reputable auditors, the KPMG professional services, to produce a credible annual accounts/financial statement for the company in accordance with the International Financial Reporting Standard.”
Asked if the submission of the financial statements would be enough to save the companies from delisting, the Chief Executive Officer, NSE, Mr. Oscar Onyema, confirmed that a number of the affected companies had contacted the Exchange with a view to resolving the situation.
According to him, once the companies do what is expected of them, they will avoid being delisted.
Although Onyema did not disclose the companies that had contacted the Exchange and the ones likely to avoid being delisted, he hinted that some of them would be spared.
He said, “A number of those companies have engaged the Exchange and we are now talking with them. Some of them have filed their papers and some of them are holding their AGMs.”
