Local investors ask SEC for forensic audit of 7UP since 2014

 

• Not convinced takeover plan of majority shareholders isn’t fraudulent

Local investors in the Nigerian capital market have called  on the nation;s apex capital market regulator, the Securities and Exchange Commission (SEC)to carry out  forensic-audit of 7UP since 2014,”because we were yet to be convinced that the recent Takeover Notification of 7UP weren’t fraudulent”.

Alhaji Gbadebo Olatokunbo, a shareholder activist and co-founder of Nigeria Shareholders Solidarity Association (NSSA) in 1985, who speaks on behalf of minority shareholders, puts the following down.

we seriously smelled rat that the notification were out to short-change local investors and respectfully hereby present some of our reasons.

“That, the 57years old 7UP was making good sales and profit with very good price at The NSE with the good result and return on investment in 2014.

Suddenly,by the first half 2015 something known only to few foreign-team within the company happened and the company started reporting loss.

The drifting continued and the same powers behind the scenes were now ready to buyout Local-Investors at their price.

THE QUESTIONS:

Why the renewed interest of the majority shareholders in A Sudden Sick Company?.

Why were they now interested in the takeover when the company wasn’t growing?.

How are we sure that, they weren’t the brains behind the unexpected Bad Results?.

Which Investors were ready to buy a dead Company and if yes, for what?.

We were of very strong view that, the proposed injection of $60m were part of our PROFIT on Investments in 7UP,which were denied us and was about to be presented as a bailout-fund for A Very Solid 7UP Company, which we view with serious abjection and slap on our collective business senses and thereby ask for A FORENSIC AUDIT OF OUR COMPANY 7UP FROM 2014.

DANGERIOUS TREND

It’s observed that companies would get quoted on NSE, made good uses of its advantages to Level-up to international standard with very strong holds of our market-share with their brands, which were highly supported by Nigerians and then created false-alarm and then some lobbyists would come forward with some questionable bailout-fund for our very solid companies with the Shareholders Fund that were fraudulently denied the those investors as the return on their Investments; while other companies are waiting to see if the scheme would scale through and then emulate such bad behaviours.

We hereby call on both The Ministries of Industry and Finance to seriously look into abuses and corruption going on within the private sector and make necessary amendment, while some of the quotation laws and rules of NSE be seriously looked into to safeguard local investors from cowboys-business-people.

HISTORY OF 7UP

The 57years old Company is as old as Nigeria and it has a lot to do and doing with the nation and that of Lagos State in particular.

The Ijora Highway-Bridges came about due to the respect and honour, The Federal Republic of Nigeria under the leadership of General Yakubu Gowon had for 7Up; while the Ijora-Community of Ojora-Kingdom gave all they had for the birth and growth of the same company.

The Local-Investors got seriously involved in the growth of 7Up long ago before it was quoted on the NSE and have continued to contribute to its growth and market shares while thousands of Nigeria workforce gave it, its current position, therefore, the 7UP Bottling Company is a Nigerian company and should not be masquerading as a foreign company with some unknown  core-investors.