By Aduragbemi Omiyale
A fully integrated downstream player in the country’s energy sector, MRS Oil Nigeria, is seeking the approval of its shareholders to leave the Nigerian Exchange (NGX) Limited for the NASD over-the-counter (OTC) Securities Exchange.
In a notice to the nation’s flagship stock exchange on Tuesday, MRS Oil disclosed that its decision to exit the platform is due to “regulatory obligations, administrative and compliance costs, emerging opportunities, evolving market conditions and the trajectory of projected long term financial and operational growth.”
It stated that the equities of the organisation would be delisted from the NGX and steps would be taken for the “shares of the company to be admitted on the NASD OTC Securities Exchange.”
However, an Extraordinary General Meeting (EGM) will be held on Tuesday, May 21, 2024, at 11 am at the Civic Centre in Lagos for investors to authorise the “voluntary delisting” of the issued shares of MRS Oil, comprising 342,884,706 ordinary shares from the daily official list and trading on the Main Board of the NGX.
After the delisting, the firm will move to the NASD OTC Securities Exchange and continue its usual business operations as an unlisted public limited liability company.
In the disclosure on Tuesday, the board stressed that it “does not envisage that the voluntary delisting will negatively impact the value, transparency and corporate governance of the company and/or its existing and potential business opportunities,” noting that it will “continue to explore and prioritise prospects for value creation for its shareholders.
The board the exit of MRS Oil from the NGX will provide an opportunity for the organisation 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.”
