UK firm kicked out of Nairobi Securities Exchange

It was suspended from trading at the NSE in May 2017

Troubled logistics firm-Atlas Development and Support Services (ADSS) has been delisted from the Nairobi Securities Exchange (NSE) .

The delisting took effect on April 25, bringing to an end a five-year stint at the Nairobi bourse.

Registered in Guernsey, UK, in 2002, Atlas was admitted to trade at the NSE in December 2014, where it was cross-listed in the London Stock Exchange (LSE)’s Alternative Investment Market (AIM) segment.

In December 2015, the firm decided to close its operations in Kenya, placing its Kenyan subsidiaries into liquidation by way of a Creditors Voluntary Liquidation after financial headwinds.

The firm had hoped the closure of the Kenyan subsidiaries, Ardan Logistics Kenya Ltd, Ardan (Medical Services) Ltd and Ardan (Civil Engineering) Ltd, would improve the group’s overall cost base.

Two years later (May 2017), it was suspended from trading at the NSE following resignation of its Kenyan nominated advisor I&M Burbidge Capital.

The Nairobi move came after the firm had been delisted at the LSE in the same month, following the resignation of its Nominated Advisor, Stifel Nicolaus Limited.

READ:Atlas suspended from trading at LSE

NSE chief executive officer Geoffrey Odundo had then attributed the decision to the firm’s “unresolved issues at the London Stock Exchange” where it had been suspended following the resignation of its nominated adviser.

Atlas had also failed to prepare and publish its financial statements from December 31, 2015 to date, hence failing to comply with the continuing listing obligations.

The Nairobi headquartered logistics firm also did not have a Kenyan nominated advisor, and no updates have been made by the company to the shareholders and the general public regarding their closing down process.

“Notice is hereby given on the mandatory delisting of Atlas Development and Support Services from the Nairobi Securities Exchange (NSE) effective April 25, 2019,” NSE said in a statement on Friday.

“This follows the closing down of the company’s operations; the deregistration of the company in its country of incorporation under the Guernsey laws and failure by the company to adhere to regulatory requirements from the year 2017 when the security of the company was suspended from trading on the NSE,” the bourse added in its public notice.

The delisting has been approved by the Capital Markets Authority (CMA).

It now winds up Atlas’s existence in the Kenyan market, a blow to investors and shareholders who had hoped of its possible turnaround or listing in another stock.

The firm has had previous troubles including tax evasion claims in Ethiopia, a market it had entered through the acquisition of TEAP Glass.

The Ethiopian Revenue and Customs Authority seized USD2.4 million from the subsidiary’s account to clear the tax liability.

The Nairobi-headquartered support services and logistics company was listed on the Growth Enterprise Market Segment (GEMS) of the NSE, after it had (then) raised USD5 million through a private placement to Kenyan investors.

According to the then CEO Carl Esprey, the firm had hoped to tap the growing opportunity in the region as well as leverage on local content.

“The strong interest from Kenyan investors is recognition of the opportunity to create a world class development and support services provider in Eastern Africa,” Esprey had said during the listing.

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Low volumes mark opening of Nairobi Securities trading

Equity Group Holdings was the day’s main feature with 2.3 million shares traded

The week’s trading at the Nairobi Securities Exchange (NSE) opened on a modest pace marked by low volumes and value of shares.

The bourse opened the week with a total of seven million shares valued at Ksh219 million (US$2.2 million) against 9.3 million shares valued at Ksh249 million (US$2.5 million) posted on Friday.

The NSE 20 share Index, which tracks blue chip companies, was down 15.38 points to stand at 2899.41.

All Share Index (NASI) shed 0.58 points to settle at 157.33.  Equally, the NSE 25 Share index dropped 8.23 points to settle at 3957.02.

Banking

The banking sector had shares worth Ksh148 million transacted which accounted for 67.76 per cent of the day’s traded value.

Equity Group Holdings was the day’s main feature with 2.3 million shares valued at Ksh100 million changing hands at between Ksh42.75 and Ksh42.45.

KCB Group up five cents to Ksh44.85 moved 661,000 shares valued at Ksh29.6 million.

Diamond Trust Bank moved 57,000 shares worth Ksh7.2 million and closed at Ksh126.75.

 Commercial & Services

The commercial and services sector had shares worth Ksh3.4 million traded and accounted for 1.58 per cent of the day’s turnover.

Nation Media Group exchanged 38,000 shares valued at Ksh2.3 million at between Ksh61.50 and Ksh62.00.

 Investment Services

Nairobi Securities Exchange (the company) closed the day 1.46 per cent lower to Ksh13.50 moving 345,000 shares valued at Ksh4.6 million.

Manufacturing & Allied

The manufacturing and allied sector had shares worth Ksh23.9 million traded and accounted for 10.90 per cent of the day’s turnover.

BOC moved 150,000 shares valued at Ksh10.8 million at a fairly stable price of Ksh72.00. Carbacid moved 762,000 shares worth Ksh7 million and closed at Ksh9.20.

 Telecommunication

Safaricom had 1.2 million shares valued at Ksh34.7 million transacted at between Ksh27.05 and Ksh27.50, representing 15.86 per cent of the day’s traded value.

Bonds

The bond market on the other hand registered improved activity with bonds worth Ksh6.3 billion (US$62.4 million) transacted compared to 972 million (US$9.6 million) registered the previous session.