Greif Nigeria PLC, a manufacturer and marketer of steel drums, is set to enter the third and final phase of its delisting from the Nigerian Exchange (NGX) after resolving outstanding tax liabilities and other debts.
The company, which was listed on the NGX in 2011, has experienced a prolonged decline in its stock performance, dropping by 57% from N13 at listing to N5.45 due to increased competition and a stagnant market for steel drums.
Greif’s impending delisting was disclosed by its liquidator, Inam Wilson, in an announcement on the NGX dated September 13, 2024.
According to Inam Wilson, the delisting is a result of Greif Nigeria’s liquidation by the Corporate Affairs Commission (CAC).
About the Company
- Greif Nigeria Plc, formerly known as Van Leer Containers (Nigeria) Plc, specializes in the production and marketing of steel drums, plastic containers, and sheet metal products.
- The company also provides services such as steel punching and aluminum welding.
- Headquartered in Apapa, Nigeria, Greif Nigeria Plc operates as a subsidiary of Greif International Holding BV.
The company’s stock price has steadily declined since its listing, losing more than 50% of its share price.
Statement from the Liquidator
Inam Wilson, the company’s liquidator, confirmed that the delisting process has begun following the company’s liquidation by the CAC. In the announcement, he stated:
“This announcement is to notify the Nigerian Exchange Group and the investing public that Greif Nigeria Plc (‘the Company’) is currently undergoing its delisting from the Nigerian Exchange as a result of its liquidation at the Corporate Affairs Commission.”
Wilson added that the company, having settled its tax liabilities, is in the final stages of clearing its remaining debts and liabilities.
He also noted that the company’s registrars, Crown Registrars, will be contacted to facilitate final distributions to shareholders where applicable.
Once all liabilities are settled, a final general meeting will be convened, during which the liquidation account will be presented to shareholders.
Stock Performance
Greif Nigeria PLC’s share price faced its most significant drop during the economic downturn caused by the COVID-19 pandemic, with a 33% decline in 2021 alone.
Earlier this year, the company’s chairman, Mr. Adedayo Olowoniyi, acknowledged the challenges facing the business, citing increased competition and a stagnant market for steel drums.
“As a result of increased competition and a stagnant market for steel drums, we do not see an improvement happening in the near future. Greif Nigeria has been operating well below operating costs, even below direct material costs, and sees no signs of improved market condition.”
The company’s ongoing financial struggles have culminated in its decision to delist, bringing an end to trading activities on the NGX.
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