Investors risk N807m loss as NSE suspends Avon Crowncaps
Investors risk N807m loss as NSE suspends Avon Crowncaps
Investors in Avon Crowncaps & Containers (Nigeria) Plc risk losing more than N807 million in current valuation of their shares following the suspension of the packaging company by the Nigerian Stock Exchange (NSE).
The NSE had on August 31, 2017 suspended trading on the shares of Avon Crowncaps after the packaging company filed in for voluntary delisting of its shares from the Exchange.
The decision on voluntary delisting might not be unconnected with the recurring inability of the company to meet post-listing requirements and the financial costs of its continuing listing.
More than 80 per cent of Avon Crowncaps’ equities are held by foreign core investors. Avon Crowncaps manufactures and sells drums, crowncaps, pilfer-proof caps, containers, metal printing, inks, colourants and pigment pastes amongst others.
With the full suspension, there will be no trading and price change on the shares of the packaging company, automatically locking in N807.09 million market value of Avon Crowncaps.
Avon Crowncaps has issued outstanding shares of 683.97 million listed on the main board of the NSE. The closing price for the company was N1.18 per share.
The NSE stated that the suspension was “in compliance with the approved scheme of arrangement between the company and holders of its fully paid ordinary shares which will lead to the voluntary delisting of the company from the official list of the Exchange”.
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