The Nigerian Exchange Limited (NGX) has officially announced the delisting of DN Tyre & Rubber Plc, known for marketing Dunlop tyres in Nigeria, and Greif Nigeria Plc. This action follows a regulatory assessment that found both manufacturers were unable to adhere to the required listing standards.
The board of NGX Regulation Limited (NGX RegCo), the oversight body for the exchange, approved the removal of these two companies from the daily official list, with the delisting effective Thursday, April 9.
According to the NGX statement, the exchange had been in discussions with DN Tyre & Rubber for approximately twelve years, aiming to bring the company back into compliance. When these efforts proved unsuccessful, NGX RegCo issued a final delisting notice in April 2018. The company subsequently informed the exchange that it was undergoing a restructuring programme, leading to its reclassification as a "Restructuring" entity in August 2018.
DN Tyre & Rubber faced trading suspension in October 2018, with its share price remaining static at N0.20 since July of that year. The exchange noted that the company had struggled to secure investors for its ten-year business plan, spanning from 2020 to 2029. Despite being granted an additional year in 2023 to find core investors, the compliance and operational deficiencies persisted, leading to the final decision.
DN Meyer, the parent company, last published its financial report for the fourth quarter ending September 2022, indicating a loss after tax of N9.7 million and net assets valued at N736.5 million.
Meanwhile, Greif Nigeria, formerly Van Leer Containers, is being removed from the exchange's quoted companies list due to its completed liquidation last November. The manufacturer of steel drums had been out of trading operations since June 2022.
Ernst & Young, the company's independent auditor, stated in its 2020 annual report that Greif had ceased operations for two consecutive years, its properties, plant, and equipment had been sold, and the directors had no immediate plans to resume manufacturing given the business environment in Nigeria. The auditors also noted that the next step would be a purchase offer for minority shares to finalize the delisting process. Furthermore, the auditor's findings indicated a material uncertainty that cast doubt on Greif's ability to continue as a going concern.
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