The Nigerian Exchange Limited (NGX) has shown DN Tyre & Rubber, marketer of Dunlop tyres in Nigeria, and Greif Nigeria the exit door, following a regulatory review that revealed both manufacturers’ inability to measure up to listing standards.
At a meeting of the board of NGX Regulation Limited (NGX RegCo), the market watchdog arm of the Nigerian Exchange Plc agreed to take the duo out of the daily official list of the bourse, NGX stated in a note to issuers. The exit takes effect from Thursday 9 April.
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“NGX RegCo engaged DN Tyre with a view to returning the company to its compliance status for the past twelve (12) years,” the statement said.
“When these efforts did not yield results, NGX RegCo served the Company with a final delisting notice in April 2018, further to which the company informed NGX RegCo Management that it was carrying out a restructuring programme which led to the Company being re-classified as a “Restructuring” company in August 2018,” it added.
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DN Tyre & Rubber’s troubles came to a head in October 2018 when it was suspended from trading on the exchange, with its share price immoveable at N0.20 ever since July of that year.
The NGX noted in the statement that it has been impossible for the tyre maker to win over any investor that will commit to its ten-year business plan, running from 2020 through 2029.
In the face of the ordeal, the exchange in 2023 gave the company a further one year grace period to hunt for core investors. But those compliance and operational inadequacies remain unresolved until now, it said.
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DN Meyer last issued its financial report for the fourth quarter ending September 2022, recording N9.7 million in loss after tax and N736.5 million in net assets.
Meanwhile, the NGX is withdrawing Greif Nigeria (formerly Van Leer Containers) from its list of quoted companies and trading platform in consequence of the liquidation of the company, completed last November.
Greif, which manufactured steel drums, has been barred from trading since June 2022.
“The company had been out of operations for the past two consecutive years, the properties, plant and equipment of the company had been disposed and the directors do not have any immediate plan to resuscitate manufacturing in the context of the external business environment in Nigeria,” Ernst & Young, the independent auditor, stated in the company’s 2020 annual report.
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“The next step is to make an offer to purchase minority shares in order to complete the delisting process.”
Further in its audit findings, the external auditor observed that a material uncertainty existed that put Greif’s chances of continuing as a going concern in question.
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