7-Up shareholders decry move by Afelka to buy out all minority shares

Nigerian minority shareholders have protested the move by the majority core investor in Seven-Up Bottling Company Plc-Affelka SA, to buy out all minority shareholders.

Affelka SA, the foreign majority core investor in Seven-Up Bottling Company Plc, had launched a bid to buy all outstanding shares held by minority shareholders in the company

Regulatory filing had showed that Affelka SA had secured initial regulatory approval to acquire all the “outstanding and issued shares of Seven-Up Bottling Company that are not currently owned by Affelka”.

Founder, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, said the decision by Affelka, which owns about 73 per cent, is an affront to the Nigerian consumers and shareholders that had helped in building the soft drink company to its enviable position.

“I don’t think it is an appropriate thing to do, we have contributed all these years to build this company and now they want to take us out, from sharing in the wealth we created. It is a very serious issue,” Nwosu said.

President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar, also asked Nigerian capital market regulators to protect minority shareholders’ interest in the transaction.

Affelka is offering N112.70 per share for the 171.54 million ordinary shares of 50 kobo each held by the minority shareholders, representing 26.78 per cent of seven-up bottling company’s issued share capital.

The bid price represents 15 per cent premium on the last traded share price of the company on august 9, 2017, the last business day prior to the date the proposal was received from Affelka SA by Seven-up Bottling Company’s board.

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