National Investment Company Limited(NICOL) risk being de-listed on the Dar bourse due to failure of filing financial statements with the regulating bodies CMSA and DSE. This has lead to a month trade suspension on the stock market(DSE) and an ultimatum to file the reports for financial year 2009 and 2010 within the same month.
BELOW IS AN EXTRACT FROM NICOL'S WEBSITE:
On the 26th of February 2011 NICOL Shareholders met and made certain important decisions regarding the future of their company. CMSA did not agree with the Shareholders’ decisions, and instead CMSA issued an order for the removal of the NICOL Board and its CEO. NICOL has therefore filed a lawsuit against CMSA and has taken the Shareholders’ claims to their rights to the High Court. A decision from the Court is expected on 10th of May 2011, and as soon as that decision has been rendered, NICOL will be communicating with its Shareholders as appropriate.
Any Shareholder unable to attend the meeting of 26th February should feel free to contact the NICOL offices for copies of all documents and presentations given at that meeting.
I've got some questions to NICOL's Management!
1.Why since inception of the company a couple of years ago they have not paid dividend?
2.Why do they get into conflict with regulatory bodies? I it the only listed company?
3.After investing a couple of billions in the defunct companies, why should they tell us that they want to sell holding in NMB to diversify? how can we belive them? they have invested severally and failed!
NICOL has failed to fulfill their promises to Tanzanian investors and now they are confused!I do remember their countrywide trips to raise capital which costed millions of shareholders money, and millions of listing expenses! Why is the board of Director not complying with regulatory bodies? There must be something fishy behind these unacceptable behavior!
FUNNY MARKET VALUATION OF NICOL!
Following the above list of shareholders, NICOL holds 6.6% of NMB Bank and current market value of the bank is Tsh415bln therefore equivalent holding of NICOL in NMB is valued at Tsh27.39bln. Amazingly, NICOL market valuation is standing at TSh 16.95bln.Had NICOL being holding only NMB it would be currently be Undervalued by the staggering Tsh 10bln.However, Nicol is holding other investments therefore the undervaluation may be even bigger! Why are the shareholders denied this value? Management of NICOL should be responsible for this gross undervaluation of the company! Would the management of NICOL be reliable one could buy NMB Shares via NICOL and hence activate the dormant NICOL's share exchange desk!
Finally, I commend and extend my sincere thanks to the regulators for standing firm to protect shareholders of NICOL! And also would like to urge CMSA and DSE not to de-list the poor managed company rather shareholders should look for non-politicians to lead and manage the company. De-listing would be a death blow to poor shareholders in upcountry who barely follow up NICOL's operations!
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