16/12/2010 05:25

MIXED REACTIONS TRAIL PLANS BY NBC TO DELIST SHARES FROM NSE

Mixed reactions, yesterday, trailed reported plans by Nigerian Bottling Company Plc (NBC), to formally delist its shares from the Nigerian Stock Exchange (NSE).
While some experts and shareholders’ group described the development as “surprising”, others said it should be regarded as “sign of things to come”.
An economist, Mr Innocent Otoide, said except the leadership of the Securities and Exchange Commission (SEC) and NSE “act fast” to restore “integrity” to the market, more firms may exit the market.
Commending the board and management of NBC for the step, he explained that the foundation of   businesses is built on “realities on ground and not sentiment”.
He said the various disputes are making the NSE unattractive to fresh investors, adding that “capital market all over the world thrive on good integrity and trust”
But, the National Coordinator of Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, faulted the move by NBC to exit the market.
He said apart from reading it on the pages of newspapers, members of his group are yet to be officially briefed by the company, adding that there may be need for arbitration.
National Chairman, Proactive Shareholders Association of Nigeria, Mr Taiwo Oderinde, said: “Stakeholders need encouragement. The regulators need to encourage stakeholders in times like this.”

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