Nigerian Stock Exchange Delists Union Diagnostics

The Nigerian Stock Exchange has delisted a medical diagnostics firm, Union Diagnostics, from the stock market.

Naija News reports the company decided to delist from the main board of the stock exchange after its shareholders approved the delisting of the company’s shares at the last Annual General Meeting on January 25, 2021.

It was learned that the decision to delist from the Exchange by the company was motivated by certain challenges around the inability to raise capital to fund expansions.

In a statement on September 2021, Union Diagnostics said the delisting follows the transaction that involved the transfer of 1,407,885,051 units of shares to Cedar Advisory Partners and other parties.

The statement disclosed that Cedar Advisory Partners Limited holds 59.66 per cent shareholdings in the company following the acquisition.

It added that the delisting was approved by all relevant regulatory bodies such as the Securities Exchange Commission, the Nigerian Exchange Limited, Federal High Court, and the Federal Competition and Consumer Protection Commission.

The statement reads: “The decision to delist from the Exchange by the company was motivated by certain challenges around the inability to raise capital to fund expansions, the challenging operating environment and strong headwinds specifically relating to poor health-seeking behavior of Nigerians, gross underfunding of the healthcare sector and depreciating exchange rates that affect importation of consumables.

“Following the delisting, the post-scheme shareholding structure entails, Cedar Advisory Partners Limited, Lifecare Partners Limited, Akinniyi Ambrose Olusola, Akinniyi Elizabeth Abimbola emerge as the shareholders of the company with a respective shareholding of 2,119,771,663; 1,038,000,000; 233,462,131; 161,904,734, reaching a total of 3,553,138,528 units of shares.

“Lifecare Partners Limited is an accredited HMO in Nigeria, holding 29.21 per cent shareholding in Union Diagnostics Plc. Dr Akinniyi Olusola, a director of Union Diagnostics Plc, currently owns 98.50 per cent of equity interest in Lifecare Partners Limited.”