Why Atlas was delisted from NSE

An investor at NSE. FILE PHOTO | NMG 

By BRIAN NGUGI
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Summary

• The Nairobi Securities Exchange (NSE) has delisted troubled UK-based company Atlas African Industries from the bourse, citing unresolved issues.
• The loss-making Atlas, which offered support services in the oil and gas industry, has witnessed a troubled short history since listing on the NSE in December 2014.
• The firm shut down its Kenyan operations in 2015 to apparently focus on growing its Ethiopian business. But the Ethiopian business ran into regulatory problems shortly thereafter.

The Nairobi Securities Exchange (NSE) has delisted troubled UK-based company Atlas African Industries from the bourse, citing unresolved issues.

The loss-making Atlas, which offered support services in the oil and gas industry, has witnessed a troubled short history since listing on the NSE in December 2014.

The firm shut down its Kenyan operations in 2015 to apparently focus on growing its Ethiopian business. But the Ethiopian business ran into regulatory problems shortly thereafter.

In 2017, the company was suspended from trading at the NSE’s Growth Enterprise Market Segment (GEMS) where it had been listed for a period of 90 days, making its stock illiquid for existing and prospective shareholders.

On Thursday, the NSE said the decision to delist it had been backed by the Capital Markets Authority (CMA).

The NSE cited several grounds for the decision, including the company keeping investors in the dark from 2015.

“The company is closed down having been struck off the register under the Guernsey laws, thus ceasing to exist as a company,” said the NSE.

“The company has not prepared and published its financial statements from December 31, 2015 to date, thus failing to comply with the continuing listing obligations… The company does not have a Kenyan nominated advisor following the resignation of I&M Burbidge Capital in June 2017.”

The NSE also said that no updates have been made by the company to the shareholders and the general public regarding their closing down process.

The May 8 last year suspension of the troubled company from the bourse rocked remaining hopes of existing shareholders that Atlas would resume trading.

In January this year, hundreds of Kenyan investors who bought shares in the firm lost all means of tracking performance of the firm after the collapse of its website, the only means left for communicating with shareholders.