SEC to grant extension of Eterna Plc N5.303 bn Rights

by Peter Obiora of proshare.com

Apex Capital Market Regulatory Institution, the Securities and Exchange Commission (SEC) may grant extension for the Eterna Oil & Gas Plc (Eterna) year 2009 N5.303 billion Rights Issue.

Lanre Oloyi, Head, Media of SEC confirmed this to Proshare NI today from Abuja Nigeria in a telephone chat.

This is coming on the heels of shareholders of the company requesting for an extension of the Rights of the Petroleum Marketing Company following its official closure Thursday April 30 2009.

Boniface Okezie, National Chairman, Progressive Shareholders Association of Nigeria (PSAN) confirmed to Proshare NI today in Lagos Nigeria at the Nigerian Stock Exchange (NSE) that shareholders have written the Commission requesting an extension of the Rights Issue to enable them take up same.

“Some of us could not get our Circulars when the Rights closed, therefore, we have written to SEC to extend the offer to enable us take up our Rights in the company” he said.

The Rights opened Wednesday April 22 2009 and closing Thursday April 30 2009, over two weeks now shareholders of the company are still clamouring to take up the Rights from the company.

Oloyi, Head, Media of the Commission; confirmed to Proshare NI that one of the Shareholders Associations has written to SEC for extension of the Eterna Plc Rights Issue.

Oloyi affirmed that the Petroleum Marketing Company applied to do the Rights for a period of eight (8) days. “Some investors have notified us and are complaining that they couldn’t receive their circular when the Rights closed” he said.

“It is what Eterna Plc asked for that we gave to them; and I can confirm that they applied for only 8 days” Oloyi said.

He further affirmed that following this development, the Commission would inline with its Rules and Regulations consider the issue in the interest of the investing Nigerian Public.

As earlier reported, Eterna Plc to raise N5.303 billion, opened a Rights Issue by offering to its existing shareholders 533,000,000 Ordinary Shares of 50 Kobo each at N9.95 Kobo per share.

This the company gave on the basis of forty-one (41) new Ordinary Shares for every sixty (60) Ordinary Shares held as at the close of business on March 16 2009.

Eterna in the document affirmed that the Rights being offered were tradable on the Floor of the Nigerian Stock Exchange (NSE) for the duration of the issue.

The Petroleum Marketing Company had affirmed in the document that Ordinary Shares not taken up by Thursday 30 April 2009 will be allotted on a basis to be determined by the Directors and cleared by SEC to existing shareholders who would have applied for additional shares over and above provisional allotment under the terms of the Issue.

Lead Issuing House to the Rights is Radix Capital Partners and Issuing House is Meristem Securities Limited.