Shareholders of 11Plc (formerly Mobil Oil Nigeria Plc) have approval to the company’s proposals to voluntarily delist from the Nigerian Stock Exchange.
The approval was part of the resolution at the company’s Annual General Meeting held in Abuja.
The shareholders also approved the transfer of the real estate portfolio of the oil company to a wholly owned subsidiary, 11 Hospitality Limited.
The meeting also approved distribution of N2.98bn as cash dividend for the 2019 business year, representing a dividend per share of N8.25.
The board of directors of 11 Plc had said that sequel to its meeting held on February 27, 2020, it considered and approved the proposals for the oil firm to voluntarily exit from the Nigerian Stock Exchange.
In a statement obtained from the NSE, the company noted that its decision to exit the Nigerian Bourse would be subject to shareholders’ approval at the next Annual General Meeting slated for June 3, 2020, according to the notice filed on the stock exchange.
In line with the NSE rules, shareholders of the company will have a 90-day window on voluntary delisting to decide on the exit plan to offer shareholders.
In addition to this, the oil company also sought to restructure the company’s business by transferring its real estate unit to 11 Hospitality Limited, the new subsidiary of the company, for optimum return on investment, while 11 Plc would concentrate more on the downstream sector of its business.
11 recently finalised discussions with the Asset Management Company of Nigeria to acquire the Lagos Continental Hotel.
The company said in a statement filed at the Nigerian Stock Exchange on Monday that the acquisition was subject to terms and conditions between both parties.
The company said it aimed to diversify its interests, given a challenging environment in the downstream sector of the petroleum industry.
According to the statement, the new asset will require significant investment to raise standard from the current state to the level consistent with similar facilities in major cities around the world.
It said, “Fuel margins in the industry have remained stagnant for several years in the highly competitive and regulated industry. We anticipate that this asset will contribute positively to earnings and underlines the faith of its stakeholders in the future of the Nigerian economy.
11 reported a 37 per cent drop in profit after tax or the first quarter ended March 2020.
According to company’s report obtained from the Nigerian Stock Exchange, its profit after tax stood at N1.28bn for the first quarter, as against N2.04bn recorded in 2019, representing a drop of 37 per cent.