MRS Oil Nigeria Plc to delist from NGX
Ilenre Irele
MRS Oil Nigeria Plc has notified the Nigerian Exchange (NGX) and the investing public that the Company is planning to voluntarily delist its shares from the daily official list and from trading on the Main Board of the NGX.
In a recent explanatory note sent to NGX, the Company stated thus:
“The Board of Directors of the Company, 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, proposes to delist the issued shares of the Company, comprising a total of 342,884,706 (Three Hundred and Forty-Two Million, Eight Hundred and Eighty-Four Thousand, Seven Hundred and Six) ordinary shares from the daily official list and from trading on the Main Board of the NGX.
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.
Pursuant to the resolutions of the Board duly passed at a meeting held on October 24, 2023, the Board approved and resolved to, amongst others, recommend the Voluntary Delisting to the shareholders of the Company subject to obtaining all requisite regulatory approvals, and upon adequately providing for the interests of Dissenting Shareholders (as defined below), in accordance with the requirements of the NGX.
By virtue of the Voluntary Delisting, save for those shareholders who vote against the recommendation for the de-listing (the “Dissenting Shareholders”) and desire to exit the Company, the shareholders of MRS Oil will retain their equity interests in the Company. In other words, the Voluntary Delisting affords Dissenting Shareholders the opportunity to exit the Company in accordance with the rules of the NGX. With the approval of the shareholders of MRS Oil at the EGM and the Board’s determination of the specific terms and conditions appropriate for the implementation of the Voluntary Delisting, the Company will submit a formal delisting application to the NGX, and the Voluntary Delisting will become effective upon the Company obtaining the written approval of the NGX.
Given that MRS Oil will remain a public limited liability company immediately after the Voluntary Delisting, in order to ensure compliance with the Securities and Exchange Commission’s Rules on Trading in Unlisted Securities, upon conclusion of the Voluntary Delisting, the Board (in due consideration of the trading needs of the Company’s shareholders) will ensure that all necessary steps are taken for the shares of the Company to be admitted on the NASD OTC Securities Exchange”.
