By Dipo Olowookere
The Nigerian Exchange (NGX) Group Plc has reacted to reports questioning its corporate governance structure and the N35 billion it seeks to raise from the capital market.
In a statement, the organisation said the money would be used to fund its business expansion, especially the viable investment opportunities it has identified to be of great benefit to shareholders.
The NGX Group stated that these identified viable investment opportunities are in line with its strategic expansion plans, including deepening investments in the existing portfolio companies to ensure high and steady dividend returns, adding that it is on course with its long-term strategy, which will ensure it provides competitive returns for its investors.
“NGX Group would therefore like to assure the investing public that it will continue to uphold the highest corporate governance standards, as it has historically done.
“We are extremely mindful of due process, our records are verifiable, and we are on course with our long-term strategy execution,” a part of the statement said.
The organisation also said it would continue to uphold the highest corporate governance standards with the overriding interest of maximising value for its shareholders.
It explained that the appointments of some of its directors did not contravene any law or governance codes as they were approved by the National Council and the Securities and Exchange Commission (SEC).
The company noted that the directors were empowered to establish the Scheme further to a resolution of the shareholders at the NSE’s Extra-Ordinary Meeting held on 3 March 2020.
Additionally, the resolution for the allotment of 200,419,990 ordinary shares of 50 Kobo each for the operation of a Long-Term Incentive Plan (LTIP) consisting of a Deferred Bonus Plan (DBP) and an Employee Share Purchase Plan (ESPP) was made at the company’s 2021 AGM on September 9, 2021, to operationalise the earlier approval of the establishment of an Employee Stock Ownership Plan (ESOP) in 2020, it stated.
“Furthermore, it should be noted that part of the approval granted by the shareholders at the 2021 AGM was for half of the total number of shares proposed for the LTIP being 100,209,995 ordinary shares of 50 Kobo each to be purchased by employees under an Employee Share Purchase Plan.
“Under the terms of the ESPP, the shares will be offered at a discount of between 15 – 20 per cent of its market price and will be purchased by employees subject to the fixed cap per employee and availability of the pool.
“The other half relates to a deferred bonus under the Deferred Bonus Plan (DBP), which is earned when eligible employees meet set performance standards annually. Neither the DBP nor the ESPP is a gift to the employees. Both are multi-year plans,” the statement disclosed.
