How GSK Nigeria, Union Homes, 14 Others Were Delisted from NGX in 2024

Kayode Tokede

Despite the massive return on the local bourse in 2024, GlaxoSmithKline Consumer Nigeria Plc, joined a list of 15 other companies who voluntarily or forcefully   delisted from the Nigerian Exchange Limited (NGX).

While some adduced their exit to their management’s strategic plan related to their operations as reason for leaving the exchange, others were removed for non-compliance to post listing requirements.

Specifically, GlaxoSmithKline Consumer Nigeria voluntarily delisted its entire 1,195,876,488 ordinary shares from the Daily Official list of NGX as part of a larger restructuring effort to streamline operations in Africa and focus on markets where it had a stronger strategic presence. The company said it has been working to simplify its portfolio and improve efficiency, and delisting from the NGX was seen as part of that process.

But Niger Insurance Plc, Resort Savings and Loans Plc, and RAK Unity Petroleum Plc were delisted by the exchange on the grounds that they are operating below the listing standards and their securities were no longer considered suitable for continued listing and trading in the market.

The NGX had announced to the investing public the delisting of three companies from its daily market activities for failing to submit 2023 financial year results.

Others delisted in 2024 include: Goldlink Insurance Plc, Medview Airline Plc, STACO Insurance Plc, Standard Alliance Insurance Plc, Greif Nigeria Plc, Union Dicon Salt Plc, and Austin Laz and Company Plc, ASO Savings and Loans Plc, Union Homes Savings & Loans Plc, Capital Oil Plc and The Tourist Company of Nigeria Plc.

The board of NGX RegCo, the regulating body of the sxchange at a meeting in June 2024 had approved the commencement of the delisting process of these 14 companies.

THISDAY investigations revealed that most of the affected companies are faced with operational and regulatory bottlenecks, making it difficult to submit audited result and accounts on the Exchange.

Until it was delisted, the stock price of Medview Airlines on the floor of the NGX has not moved below or above N1.62 per share in the last two years.

As at October 15, 2021, data obtained from the local bourse disclosed that the company recorded zero trade and zero volume within the period under review.

Chairman of the airline, Sheik Abdul-Mosheen Al-Thunayan, had blamed the performance on political tension and tight liquidity.

On the other hand, RAK Unity Petroleum completed its liquidation process on September 26, 2023 and has since been dissolved, “and on that note no longer needs to remain listed on the platform of NGX.”

THISDAY further gathered that, The Tourist Company of Nigeria Plc, Standard Alliance Insurance Plc, failed to submit 2020 audited results.

Union Homes Savings & Loans Plc, Aso Savings & Loans Plc failed to submitt over six years audited result and accounts to the Exchange.

The NGX said the delisting of the three companies that took effect on July 18, was because the companies were operating below the listing standards of the exchange firm.

“Trading license holders and the investing public are hereby notified that pursuant to the provisions of Clause 15 of General Undertaking, Appendix iii Of the Rule Book of The Exchange, 2015, Part II. Issuers Rules Delisting the process which states that; to recognize that Council reserves the right to remove the name of a company from the Official List of The Exchange at its absolute discretion and may, if it considers there is insufficient public interest in the company, viz, insufficient shares in the hands of the public, or Any of the foregoing terms and conditions are not complied with, or the company becomes a subsidiary of any other company. The Nigerian bourse also said the companies’ securities “are no longer considered suitable for continued listing and trading in the market,” the NGX said in a statement.

The NGX said the operating licences of Niger Insurance and Resort Savings and Loans have been revoked by their primary regulators, National Insurance Commission (NAICOM) and the Central Bank of Nigeria (CBN) “effective 21 June 21, 2002, and May 24, 2023, respectively.”

Deap Capital Management & Trust Plc and Multi-Trex Integrated Foods Plc are the only two companies undergoing delisting watchlist.

THISDAY further gathered that the likes of Unity Bank Plc may delist from the NGX after being taken over by Providus Bank.

A reliable source hinted THISDAY that Unity Bank may delist from the bourse and create room for Providus Bank to be quoted on the Exchange by 2025.

The source further said the move by both management is aimed at meeting the CBN’s capital requirement by 2026 and utilise the capital market to raise the needed N200 billion.

“Since Unity Bank is a national bank and Providus Bank, a regional bank, it will be an advantage for Providus bank  quoted on the Exchange. It may not be an immediate strategic movement but definitely, it will be a benefit to  Providus bank since it is taking over Unity Bank,” the source added.

 The stock of Unity Bank was suspended in early July 2024 due to its failure to submit respective financial accounts for 2023.