Preline Limited has announced the acquisition of 794,969,774 units of shares, representing about 60.98% of the total shareholdings in Eterna Plc.
The acquisition is following a unanimous decision by some substantial shareholders in Eterna Plc to sell their equity holdings in the company. The substantial shareholders who sold their equity holdings are; Lenux Integrated Resources Limited, Global Energy & Raw Materials Limited, Meristem Wealth Management Limited, Radix Capital Partners Limited, GASL Nominee Limited, GTI Capital Limited and Cardinalstone Partners Limited.
According to a statement signed by the company’s secretary, Bunmi Agagu, and made available on the website of the Nigerian Exchange Limited (NGX), the aforementioned substantial shareholders divested through a Sale and Purchase Agreement (SPA) that was executed to enable Preline Limited to become the new major shareholder.
Confirming the recent development, Eterna Plc in a notice filed with the Exchange stated that: ‘’We refer to Eterna Plc’s (“the Company”) public statement dated 21st December, 2020 in which we notified our Shareholders, The Nigerian Exchange Limited (“NGX” or “The Exchange”) and the general public that some of our substantial shareholders (Shareholders) have formally informed the Board of Eterna Plc (the Company) that they are in negotiations to sell equity holdings in the Company to a ‘New Investor’.
‘’Our substantial shareholders; Lenux Integrated Resources Limited, Global Energy & Raw Materials Limited, Meristem Wealth Management Limited, Radix Capital Partners Limited, GASL Nominee Limited, GTI Capital Limited and Cardinalstone Partners Limited have executed a Sale and Purchase Agreement (SPA) that enables Preline Limited acquire 794,969,774 (Seven Hundred and Ninety Four Million Nine Hundred and Sixty Nine Thousand Seven Hundred and Seventy Four) shares of Eterna Plc representing 60.98% in the Company.’’
The firm further added that it will file a formal application with the Securities and Exchange Commission (SEC) for an ‘’authority to proceed’’ with the transaction by the transacting parties. It also rationalized the announcement of the deal, noting that‘’ Is in fulfillment of our obligation to report such matters and we will continue to do so in line with Regulatory guidelines.’’
Back story: The aforementioned shareholders had earlier announced plans to divest their equity holdings to a new investor. Consequently, a Board of Directors meeting was convened to deliberate on the matter. Sequel to this, the Board on 21st of December, 2020, announced that it has ratified the decision by these shareholders to divest.