Ardova Plc (NGX:ARDOVA) said it would delist from the Nigerian Exchange Limited (NGX) if a planned takeover bid by Ignite Investments & Commodities Limited is successful.
This is contained in a corporate disclosure that was sent to the NGX, a copy of which was obtained by the Nairametrics.
Acquisition and subsequent delisting: As Nairametrics earlier reported, Ardova informed the NGX that Ignite Investments & Commodities Limited had approached its board with an intention to acquire the shares held by other shareholders of the company at an offer price of N17.38 per share.
Note that the offer price of N17.38 represents a premium of 22.44% and 24.38% to the 30-day and 60-day volume weighted average share price of N14.19 and N13.97 respectively, on 30 November 2022; being the last trading day prior to the offer.
The deal is subject to regulatory approval: Ardova noted that it is intended that the proposed transaction will be implemented under a scheme of arrangement in line with section 715 of the Companies and Allied Matters Act, No.3 of 2020 (as amended) and other applicable rules and regulations.
Part of the statement by the company said:
“The proposed transaction is subject to the review and clearance of the Securities and Exchange Commission as well as the approval of the shareholders of the Company.
“The terms and conditions of the proposed transaction will be provided in the scheme document which will be dispatched to all shareholders following the receipt of an order from the Federal High Court to convene a Court Ordered Meeting.
“If the conditions of the proposed transaction are satisfied and same is sanctioned by the Federal High Court, the company would be delisted from NGX. Further developments will be communicated to shareholders in due course.
“Ardova Shareholders and members of the public are advised to exercise caution in dealing in Ardova’s shares until further information is provided.”