OMG! Big oil firm is set to delist from Nigerian Exchange

• MRS Oil Nigeria Plc, has made the voluntary decision to take all of its issued shares off of the NGX
• The company's Memorandum and Articles of Association will be amended as part of the delisting
• The company's memorandum and articles of organisation were amended to reflect the new share capital, and the board received shareholder approval

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

MRS Oil Nigeria Plc has decided to voluntarily remove all of the company's issued shares from the Nigerian Exchange Limited's daily official list (NGX).

Photo Credit: MRS
Source: UGC

This was decided at its Extraordinary General Meeting (EGM) which took place on June 25, 2024, the company’s disclosure on Ngx stated.

In addition to securing all necessary regulatory permissions, the approved voluntary delisting of MRS Oil Nigeria will involve an amendment to the company's Memorandum and Articles of Association, allowing for the purchase of shares and a reduction in share capital.

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What's next after delisting from Ngx?

The Board will take all necessary steps to register the Company's shares on the NASD OTC Securities Exchange after the voluntary delisting concludes, as long as the Company is still a public limited liability company.

This will guarantee that transactions involving the Company's shares are conducted in compliance with the Securities and Exchange Commission's Rules on Trading in Unlisted Securities. The shareholders approved this action.

In connection with any of its issued shares that may be purchased from dissident shareholders due to the voluntary delisting, the company received approval from its shareholders to conduct a share buyback and share capital reduction.

These actions will be carried out on the terms, in the quantities, and at the times that the Board deems appropriate, subject to and in compliance with applicable laws and regulations.

Following the conclusion of the share buyback and share capital reduction, the Board received shareholder approval to alter the company's memorandum and articles of incorporation to reflect the updated share capital.

To give full effect to the aforementioned resolutions, the board of directors also received approval from the shareholders to take all legal actions and steps, including but not limited to entering into and executing such agreements and documents, appointing professional advisers and other parties, and adhering to directives of any regulatory authority.

To implement this resolution and adhere to all pertinent regulatory obligations, the Company Secretary was authorised to make all such filings and to conduct all required and appropriate legal measures and steps.

Major companies delisted from NGX in 2023

Legit.ng reported that over the years, companies have continued to list and delist on Nigeria's stock exchange (now known as Nigerian Exchange Limited or NGX) for one reason or another.

In 2023, once stalwarts of the exchange, some notable companies have opted to delist and redefine their financial trajectories.

Delisting is when a company voluntarily removes its shares from the stock exchange, effectively becoming a private entity.

Source: Legit.ng