The Nigerian Stock Exchange has suspended trading on shares belonging to Paints and Coating Manufacturers Plc.
According to a circular released by the bourse on Wednesday, the suspension is to allow the company determine which shareholders are qualified to receive scheme shares ahead of the company’s voluntary delisting.
According to NSE regulations, quoted companies can choose to voluntarily delist their shares for various reasons like restructuring, mergers and acquisition subject to the fulfillment of delisting rules and regulations.
The bourse can also choose to delist a company that has repeatedly failed to abide by rules to protect investors.
At the close of trading on Monday, the company’s shares closed at 59 kobo. The company’s capitalisation is pegged at N467.8 million with 792.9 million shares.
In March 2017, the Asset Management Corporation of Nigeria (AMCON) sold its 7.4 percent equity stake in the company to Bozfeat Ventures Limited at a negotiated price of N1.05 per share.
The divestment involved the transfer of a total of 58.66 million ordinary shares of 50 kobo each.
The AMCON-PCMN deal was done through the negotiated cross deal platform of the NSE, a special-purpose trading platform that for transactions equivalent to five percent or more of the issued shares of any company.
Paints and Coatings Manufacturers was incorporated in 2001 and got listed on the NSE in 2010.
The company deals with the production of chemicals, marine, protective, industrial, decorative and architectural coatings and paints.