…plans sale of assets
Greif Nigeria Plc, a manufacturer of steel drums and plastic containers, has revealed its plans to delist from the Nigerian Stock Exchange.
The company said in a statement on Wednesday that the delisting would go through if approved at its Extraordinary General Meeting slated for January 23, 2020.
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Greif Nigeria had in February taken a decision to suspend its operations due to the low performance of the company and challenging market conditions.
Adedayo Olowoniyi, the chairman of the company, 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.
“Therefore, we have decided to stop operations with immediate effect. The coming months we will investigate on if and/or how we can continue with Greif Nigeria.”
However, the company announced on Wednesday that sequel to the board meeting held on December 12, the company was also planning a sale of its assets, which means liquidation is in view.
The statement read in part, “The company’s land and buildings known and designated as factory at No. 1, Alapata Road, Apapa, Lagos and residence at No. 3/5 Barracks Road, Apapa, Lagos be sold at a price and upon such terms and conditions negotiated and determined by the board.
“The company’s shares would also be delisted from the Nigerian Stock Exchange as the board has been authorised to take such steps or actions and to do all things as may be necessary to give full effect to the above-mentioned resolutions.”
It added that its nominees recommended that the register of members and transfer books be closed from December 23 to 24, 2019 with both dates inclusive.