• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      CBN gets new director of currency operations

      5 hrs

      Banking

      Q3’19: Banks’ NPLs moderate by N1.14trn

      20 hrs

      Finance

      Decline in FDI to persist in Nigeria, say experts

      21 hrs

      Banking

      Acess Bank donates to immigration service in Lagos

      22 hrs

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Frontpage

      Inflation may rise in coming months – LCCI

      4 hrs

      South Africa

      On South Africa GDP contraction 

      December 4, 2019

      Foreign Investments

      Countries seen rejecting foreign investments for national security, says UNCTAD report

      December 3, 2019

      Frontpage

      US in another trade war, vows to impose 100% fine on French goods 

      December 3, 2019

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Energy

      OPEC, allies cut oil output by 1.7mbpd

      20 hrs

      Frontpage

      US becomes net crude oil exporter, first time ever

      20 hrs

      Energy

      OPEC tackles energy poverty in Africa as oil nations convene in Vienna

      22 hrs

      FG to take over Yola Disco with N27bn

      December 5, 2019

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analysis

      Nigeria’s resilience against global risks

      December 3, 2019

      Analysis

      Getting the Board on board GRC implementation

      December 3, 2019

      Analysis

      How much money do you need?

      December 3, 2019

      Analysis

      On statement of changes in equity

      December 3, 2019

Equities

Affelka S.A revises scheme consideration for 7UP acquisition to N125 per share

January 10, 2018862 views0 comments

Seven-Up Bottling Company Plc. (SBC) has notified the Nigerian Stock Exchange (NSE) and the investing public Wednesday of an upward review of the scheme consideration for the company’s minority shares to N125 per share from the earlier N112.70k per share.

Affelka S.A – the holder of 73.0 percent of the company’s shares outstanding – has signaled intentions since last year to completely buyout minority shares in SBC for a consideration of N112.70 per share relative to the market price of N97.12 as of December 7, 2017.

The notification signed by Samuel Oboh, SBC company secretary, indicated that the proposed new consideration represents a 22.6 percent premium to the last traded share price of the company as of January 9, 2018, and a 27.6 percent to the share price as of August 10, 2017, which was the last business date the initial proposal was received from Affelka S.A.

While the planned purchase is still subject to approval by the shareholders at a court-ordered meeting scheduled for Thursday, January 11, 2018, the company has received a “No Objection” from the Securities and Exchange Commission (SEC). To this end, market analysts are recommending that the minority investors tender their shares for sale.


Global economy set for decade of gloom as World Bank predicts recovery set to fizzle out


“Following the planned acquisition of the ordinary shares of investors, minority investors are faced with the decision to either “SELL” or ‘HOLD”. On the consideration of the options, our overall analysis favours a “SELL” decision,” analysts at Afrinvest said late last year

Their sell decision is premised on illiquidity, weak investor sentiment and the premium pricing on offer. They claim that in the event that the shares of minority shareholders are being bought over, investors who decide to “HOLD” would be faced with illiquidity challenge associated with the stock.

As such, prices of the stock will remain rather unreflective of fair market pricing, thereby indicating an increasing likelihood of a substantial loss in value of investments.

The premium pricing on offer seems the bait for investors to sell.

“Despite the underwhelming performance so far in the year, the offer price of N125 presents an attractive opportunity for investors to recoup losses which have weighed on portfolio and invest in more liquid and fundamentally driven stocks to boost overall portfolio performance,” analysts say.

If the scheme pulls through, the shares of SBC would be delisted as it would seize to be a quoted public liability company.

About Post Author

Businessam Staff

See author's posts

Related posts:

Wall Street dips after US law on Hong Kong revives trade worries
Wall Street edges lower after conflicting trade signals
Equities sustain uptrend with N18bn gain
US-China trade optimism, earnings power Wall Street to another record high
S&P 500, Dow Jones stable as Cisco losses offset Walmart gains
Bond markets seek enlightenment from Trump on trade policy
Euro gains as dollar weakens on questions about more Fed rate cuts
Europe stocks close lower on new trade deal doubts; Peugeot down 12%
Bears open week as equities down N29bn; but yields rise in money market T-Bills trading
Wall Street moves higher on Brexit deal, robust earnings
Share on Facebook Tweet Email
TagsAffelka S.A HOLD SBC company SELL Seven-Up Bottling Company Plc.
PreviousJPMorgan Chase’s Dimon regrets calling bitcoin a ‘fraud’
NextSamsung tops list of capital spenders in 2017 with $44bn.

Leave a comment

- Cancel reply

MARKET DATA

Recent Posts

  • OMSL denies involvement in alleged attack of NPA MD by hoodlums
  • Inflation may rise in coming months – LCCI
  • CBN gets new director of currency operations
  • Six million Nigerians join rice producers, says FG
  • T-bills: FG to pay investors N847.43bn in Q1 2020

World

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

Ethiopia considers sale of minority stakes in telecoms, airline to foreign investors

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

Gas producers lament as power firms owe N1.3tn

Frontpage July 3, 2019

1
2

FMDQ lists N10bn pioneer power bond as Viathan taps debt capital market for funding

Frontpage March 6, 2018

3

Experts urge Nigeria to sign AfCTA, say pact indispensable to trade expansion

Frontpage May 14, 2018

4

Sokoto State keys into World Bank, AfDB, FDA $500m Nigeria facility with N1.1bn investment in 500km new rural roads

Frontpage September 25, 2019

5

NIPC tracked $9.29bn investment in three months

Frontpage October 11, 2019

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.