Premier Breweries: SEC Orders UBA Registrar to Accept Applications

SEC DG, Arunma Oteh

The controversy surrounding the just-concluded rights issue of Premier Breweries Plc, may have been laid to rest as the Securities and Exchange Commission (SEC) at the weekend, directed UBA Registrars Limited, to accept all rejected applications.

SEC’s Head of Media, Mr. Lanre Oloyi, who confirmed the news to THISDAY, said SEC further ruled that the initial investors should be given their full allotment first before any other subscriber could be considered.

He however said SEC could not establish any form of malpractice in the allotment process,  adding that the discrepancies that led to the dispute arose from the delay in submission of applications by agents.

The issuing house to the offer, Cowry Assets Limited, in a message to the investors said, “Good morning all. We have received a letter from SEC directing UBA Registrars to accept the earlier rejected applications, meaning this matter should be laid to rest this week.”

The Nigerian Stock Exchange (NSE) had last week frowned at the act and directed that the situation be reversed or the shares would not be listed.

In a tripartite meeting the  Exchange, UBA Registrar and the issuer (Premier Breweries Plc), it was decided that the registrars could not reject the returns since the draft (cheques) got to them on the 11th of July, 2011, in line with the procedures for submitting returns as specified in the rights prospectus.

The NSE therefore asked the issuer to do, the needful to avoid stiffer penalty.

When contacted, the issuing house, Cowry Assets Limited, declined to make comment because the regulators had already be petitioned.

Cowry Assets however said it was exploring ways to resolve the problem between the shareholders and issuer.

A group of investors had in a petition to the SEC recently accused Premier Breweries Plc, UBA Registrars and Cowry Assets of malpractices and fraud in the just-concluded rights issue by Premier Breweries Plc. As a result, the SEC last week ordered the issuing house to the offer (UBA Registrars) to submit to it their basis of allotment.

The SEC had in a letter to the issuing house requested that they forward to it various reports/documents relating to the establishment of the basis of allotment of the shares and the allotment proper.

“It was alleged that the issuer, Premier Breweries Plc, hijacked the functions of the issuing house and this has impaired the transparency of the entire exercise, ” the commission had said.

A group of investors who bought into the just concluded rights issue had recently written a petition to the SEC urging it to act swiftly to save the stock market from further derailment.

In the petition obtained by THISDAY, the investors asked the SEC to use its regulatory powers to stop the fraudulent activities a few individuals and unprofessional conduct on the part of some market operators, so as not to further erode investors’ confidence in the market. The investors had accused the issuer of fraud and unprofessional conduct calling on the regulators to council the entire exercise.