Preline Investment Limited has disclosed its intention to commence the process of acquiring 1.3million ordinary shares of Eterna Plc, which represents a 0.10percent equity stake in the company.
This would be bought at a price of N13.50 per share from minority shareholders. The stock closed at N5.5 as of April 20, 2022, an upside of 145.45percent to the tender offer price.
On November 1, 2021, Preline Investment Limited emerged as the majority shareholder following its acquisition of 794,969,774 ordinary shares or 60.98percent equity stake in the company.
Read also: Stocks lose N114bn in week ended April 8
Preline Limited makes the tender offer as required by the regulation of the Securities and Exchange Commission (SEC).
“We expect the price of the stock to jump significantly over the next couple of trading sessions. Clients who already have the stock are advised to HOLD.
“Alternatively, such clients could realise profit by selling, depending on their respective entry levels as not all the minority shares would be bought by Preline Limited. For this same reason, we advise clients who are looking to buy the stock to trade with caution,” said Meristem analysts in their recent note to investors.
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