CEM REPORT, MARKET | Preline Limited has completed the compulsory takeover of 1,300,000 ordinary shares from shareholders of Eterna Plc.
In a corporate disclosure to Nigerian Exchange Limited and the general public signed by Eterna’s Company Secretary Mandella Golkus, explained that the compulsory takeover was finalised following approval by the Securities and Exchange Commission (SEC) noting that the SEC approval was back in April 2022.
“Preline Limited has notified Eterna Plc of the completion of the Mandatory Takeover of 1,300,000 ordinary shares equivalent to 0.10% equity stake in Eterna Plc from other shareholders at a price of N13.50 per share. This notification is in fulfilment of our disclosure obligations in line with Regulatory guidelines and our corporate responsibility to our stakeholders.”
The acquisition of over 700 million units of Eterna Plc shares by Preline Limited triggered a Mandatory Tender Offer (MTO) in line with the provisions of the Investment and Securities Act and SEC’s regulations.
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The Mandatory Tender Offer (MTO) provisions by the SEC states in Rule 19.2.5 that “if any acquisition that would result in ownership of over fifty per cent (50%) of the total outstanding equity securities of a public company, the acquirer shall be required to make a tender offer under this Rule for all the outstanding equity securities to all remaining stockholders of the said company at a price supported by a fairness opinion provided by an independent financial advisor or equivalent third party. The acquirer in such a tender offer shall be required to accept all securities tendered”.