Competition Forces Greif Nigeria To Wind Up As NGX Suspends Trading Of Company’s Shares

Trading in the shares of Greif Nigeria Plc has been suspended on the floor of the Nigerian Exchange Limited as the winding up process of the manufacturer begins.

Greif is a manufacturer of steel drums and plastic containers but the company has since 2019 struggled to beat competition.

The Chairman of the company, Mr. Adedayo Olowoniyi, had said the company was underperforming.

“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 conditions,” Olowoniyi had said.

In his statement in the 2021 financial report he said, “As indicated in my 2019 statement that as a company we do not have any immediate plan to resuscitate manufacturing in the context of the external business environment in Nigeria. Coupled with the stoppage of all business operations for the third year running, our next step plan to complete the liquidation process in order to preserve shareholders fund.”

The company declared a loss of N31.407m in 2021 and it lost N19.209m in the second quarter of 2022.

In a document dated February 2, 2023, seen by THEWHISTLER, the shareholders of the company at the January Annual General Meeting approved that the company be wound up voluntarily.

It also appointed Inam Wilson Esq to be the liquidator of the company.

In 2019, Greif Nigeria had announced its plans to delist from the NGX.

“Further to the approval of the shareholders of Greif Nigeria Plc at its Annual General Meeting which held on 31 January 2022 authorizing the commencement of the process of voluntary winding up of the Company and in accordance with Section 622 of Companies and Allied Matters Act (CAMA) 2020 which states that a voluntary winding-up shall be deemed to commence at the time of the passing of the resolution for voluntary winding-up.

“NGX Regulation Limited (NGX RegCo) wishes to notify all Trading License Holders and the investing public that it has suspended trading in the shares of Greif Nigeria Plc effective on Monday to ensure a smooth winding-up process.

“This is in line with Section 624 of CAMA 2020 which provides that a transfer of shares, not being a transfer made to or with the sanction of the liquidator, and any alteration in the status of the members of the company, made after the commencement of a voluntary winding-up, shall be void,” the NGX said in a statement.