THE Board of MRS Oil Nigeria Plc has revealed plans to voluntarily delist from the Nigerian stock market, joining the list of companies delisting from the exchange.
Seven companies delisted from the Nigerian stock market in 2023, and about six others have also initiated the move to delist.
In a statement on Tuesday, April 23, to the investing public, MRS Oil said it would request approval from shareholders at the company’s extraordinary general meeting (EGM), scheduled to be held in Lagos on May 21.
The statement read, “That the voluntary delisting of all the company’s issued shares from the daily official list of Nigerian Exchange Limited be and is hereby approved, on such terms and conditions (including but not limited to timing of implementation, arrangements for dissenting shareholders (if any) and the fulfilment of specific conditions precedent to effectiveness (if any)), that the board of directors of the company deems appropriate in connection with the voluntary delisting; and subject to obtaining all requisite regulatory approvals.”
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The MRS Oil also proposed an amendment to its memorandum and articles of association to authorise the company to undertake a share buyback and share capital reduction, subject to applicable laws and regulations.
It said upon the conclusion of the voluntary delisting and while the company remained a public limited liability company, the company be allowed to take all such action as might be required to admit its shares on the NASD OTC Securities Exchange to ensure that dealings in its shares are implemented by the Securities and Exchange Commission’s Rules on Trading in Unlisted Securities.
On Tuesday, MRS Oil share price closed flat at N135.00 from what it traded the previous day.
In 2023, the Nigeria Exchange Limited (NGX) recorded the delisting of companies worth over N264.92 billion.
The companies were Union Bank of Nigeria (UBN), Courteville Business Solution, Capital Hotels, Ardova, Global Spectrum Energy, Sterling Bank, and Consolidated Hallmark Insurance.
The last two companies, however, relisted on the exchange as holding companies.
Ardova was delisted from the exchange at N16.75 per share, the highest price on the lot and UBN shares were delisted at N6.65 per share.
Courteville’s entire 3,552,000,000 ordinary shares worth N2.131 billion were delisted, Capital Hotels, valued at N9.545 billion, was delisted, and Global Spectrum Energy’s 800 million shares were delisted at N0.50 per share.
Other companies that had initiated moves to delist from the NGX and had yet to perfect the delisting processes include Oando Plc, Glaxo SmithKline Consumer Nigeria, PZ Cussons Nigeria Limited, and Coronation Insurance.