MRS Oil Nigeria Plc has received shareholders’ approval to voluntarily delist all of its issued shares from the Nigerian Exchange Limited’s daily official list (NGX) after 46 years of being listed on the Exchange.
The company is offering to pay N46.29 billion to shareholders as part of the delisting process. This move comes as several other companies have also recently delisted or announced plans to delist from the Nigerian stock market.
The oil marketing firm was listed on the NGX on January 1, 1978, as Chevron Oil Nigeria but changed its name to MRS Oil Nigeria in 2009.
The shareholders gave their approval at the company Extraordinary General Meeting held in Lagos. The issued shares of the company comprised a total of 342.885 million ordinary shares, trading at N135.00 per share as at June 27, 2024.
The company made this known in a statement signed by its secretary, Mrs. O. Jafojo released to the investing public on the NGX.
It stated that the voluntary delisting of all the Company’s issued shares from the daily official list of NGX is hereby approved by the shareholders.
It noted that the Memorandum and Articles of Association of the Company are amended to authorise the Company to undertake a share buyback and share capital reduction, saying that the Company can undertake a share buyback and share capital reduction in connection with any of its issued shares which may be purchased from dissenting shareholders where necessary as a consequence of the voluntary delisting on the terms the Board deems fit and which is subject to law and regulation.
It also added that upon conclusion of the voluntary delisting, the Company remains a public limited liability company, and the Board has been authorised to take all action as may be required, to admit the Company’s shares on the NASD OTC Securities Exchange in order to ensure that dealings in the Company’s shares are implemented in accordance with the Securities and Exchange Commission’s rules on trading in unlisted securities.
Recently, the Company said the board of directors arrived at the plan having undergone a strategic reassessment of the company’s status, particularly considering regulatory obligations, administrative and compliance costs, emerging opportunities, evolving market conditions and the trajectory of projected long term financial and operational growth.
“Amongst other benefits, it is expected that the Voluntary Delisting will afford the Company the opportunity to more efficiently strategise for the improved performance of its operations, provide the flexibility to nimbly engage in transactions and alliances which could bolster its earnings and add significant value to the Company whilst curtailing its costs and staying competitive within its industry,” the Company affirmed.
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