MRS Oil seeks shareholders approval to delist from Nigerian Exchange

AFRICAN STOCKS AND FINANCEMay 2, 2024 at 12:47 PM UTC

TLDR

MRS Oil Nigeria Plc to seek shareholders' approval for voluntary delisting from the Nigerian Exchange (NGX) on May 21, 2024.
Shareholders to consider modification of Memorandum and Articles of Association (MemArts) for share buyback and capital reduction.
Board plans to allow company shares admission on NASD OTC Securities Exchange post-delisting.

MRS Oil Nigeria Plc's Board intends to seek shareholders' approval for the voluntary delisting of the company from the Nigerian Exchange (NGX) during a meeting scheduled for May 21, 2024. The decision to exit the NGX is outlined in the notice for the EGM.

The company will also seek shareholders' endorsement to modify its Memorandum and Articles of Association (MemArts) to enable share buyback and share capital reduction.

Furthermore, the board aims to secure an understanding from shareholders that, after the voluntary delisting, and while the company remains publicly traded, it will have the authority to facilitate the admission of its shares on the NASD OTC Securities Exchange.

Key Takeaways

The NGX has experienced a significant wave of delistings in recent years. Between 2021 and 2023, approximately 15 firms were delisted from the exchange for various reasons, including breaches of regulatory requirements, voluntary delistings, and mergers. The cumulative market capitalization of these delisted companies amounted to N335.5 billion ($245 million). During the same period, eight new companies were listed on the exchange with a combined market capitalization of N1.17 trillion. This represents a net gain in market capitalization of N832.3 billion based on the listing of these companies.

MRS Oil

NGX

Stocks

Delisting

NASD OTC

Nigeria

Finance