The relationship existing between Seven up Bottling Company plc and its shareholders and the manner the company handled agitation over earlier proposed scheme of arrangement has been inferred as motivation for the shareholders’ approval of the new scheme.
Shareholders of Seven-Up Bottling Company Plc in Lagos Thursday, approved the Scheme of Arrangement by which the majority shareholder, Affelka S.A. would acquire the outstanding 26.8 per cent shares of the company.
The shareholders gave an overwhelming approval at the Court-Ordered Meeting that was convened at the instance of the Federal High Court. The meeting was held at Eko Hotel, Lagos.
Following the shareholders consent, Affelka S.A. will now increase its ownership of the Company to 100% by acquiring all the outstanding and issued shares, previously held by the minority shareholders. In consideration for the transfer of the shares, a payment of N125.00 per Scheme Share will be made to each shareholder.
This payment represents a 22.6 per cent premium on the last traded share price of Seven-up on January 9, 2018 and a 27.6% premium on the share price as at close of August 9, 2017 being the last business day prior to the date the initial proposal was received from Affelka.
Chapel Hill Denham Advisory Limited acted as Financial Advisers and Aelex Partners, Solicitors to the Company.
Commenting at the meeting, Mr. Faysal El-Khalil, O.O.N, Chairman, Seven-Up Bottling Company Plc, said: “We believe that the Scheme will create considerable benefits and opportunities for all stakeholders of Seven-Up Bottling Company Plc. and will serve to protect minority Shareholders from a continuous erosion of value. Furthermore Seven-Up Bottling Company Plc. is again assured of Affelka’s long term commitment to the Company and Nigeria.’’
Seven-Up bottling company Plc is a leading independent manufacturer and distributor of the well-known and widely consumed brands of soft drinks in Nigeria. The Company’s brands include Pepsi, 7UP, Mirinda, Teem, Mountain Dew and Aquafina premium water, which it produces and markets across the country.