Nigerian Exchange Limited has suspended trading in the shares of Greif Nigeria Plc to ensure a smooth winding up process.
This following the approval of the shareholders of Greif Nigeria Plc at its Annual General Meeting which was held on 31 January 2022, authorizing the commencement of the process of voluntary winding up of the Company and in accordance with Section 622 of Companies and Allied Matters Act (CAMA) 2020.
Greif Nigeria has in 2019 announced its plans to delist from the Nigerian Exchange. The manufacturer of steel drums and plastic containers took the decision 11 months after it suspended its operation.
Aside from delisting from the stock exchange, Greif Nigeria also plans to sell its assets in Nigeria for a price that will be determined by the company’s board.
What the NGX said
NGX in a statement said: “Further to the approval of the shareholders of Greif Nigeria Plc at its Annual General Meeting which held on 31 January 2022 authorizing the commencement of the process of voluntary winding up of the Company and in accordance with Section 622 of Companies and Allied Matters Act (CAMA) 2020 which states that a voluntary winding-up shall be deemed to commence at the time of the passing of the resolution for voluntary winding-up.”,
NGX Regulation Limited (NGX RegCo) wishes to notify all Trading License Holders and the investing public that it has suspended trading in the shares of Greif Nigeria Plc effective on Monday to ensure a smooth winding-up process.
This is in line with Section 624 of CAMA 2020 which provides that “A transfer of shares, not being a transfer made to or with the sanction of the liquidator, and any alteration in the status of the members of the company, made after the commencement of a voluntary winding-up, shall be void.”
What you must know
The Chairman of the company, Mr. Adedayo Olowoniyi, had said the company was performing below operating and material costs.
He said the company was working assiduously to prevail through the challenging business environment but still had issues in cost-recovery through several price increases in the market, despite adopting cost reduction measures and driving efficient methods.
Olowoniyi said, “As a result of increased competition and a stagnant market for steel drums, we do not see an improvement happening in the near future. Greif Nigeria has been operating well below operating costs, even below direct material costs, and sees no signs of improved market conditions”.