Shares of MRS Oil Nigeria Plc (NGX: MRS) is set to be voluntarily delisted from the Nigerian Exchange Limited.
The Shareholders of the company will be asked to consider, and if thought fit pass a resolution to voluntarily delist all the Company’s issued shares from the daily official list of Nigerian Exchange Limited at the next Extraordinary General Meeting.
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An Extraordinary General Meeting (EGM) of MRS Oil Nigeria Plc will hold at the Civic Centre, Ozumba Mbadiwe Avenue, Victoria Island, Lagos on May 21, 2024 at 11:00am.
MRS Oil is a fully integrated downstream player with a leading position in Nigeria’s oil and gas sector and is one of the largest marketers of refined products, including gasoline, marine and aviation fuels in the downstream industry in Nigeria. The Company started the marketing of petroleum products in Nigeria in 1913 under the “Texaco” brand name.
Through strategic acquisitions, MRS Oil has, since its incorporation on August 12, 1969, and listing on the NGX in January 1, 1970, continued to expand its products and service offerings into the aviation and bunkering sectors amongst others.
The Board of Directors of the company at a meeting held on October 24, 2023 approved and resolved to recommend the Voluntary Delisting to shareholders of the company. Delisting of the company will be subject to obtaining all requisite regulatory approvals and upon adequately providing for the interests of Dissenting Shareholders 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.
The NGX’s Rules for Delisting of Equity Securities from the Daily Official List of the Exchange, requires MRS Oil to make adequate provisions to purchase the interest of Dissenting Shareholders. In accordance with the requirements of the NGX, the share price at which the interest of such shareholders shall be bought, shall not be less than the highest price at which the shares of MRS Oil traded over the last six (6) months immediately preceding the date on which the notice of the EGM was issued, being N135 (One Hundred and Thirty-Five Naira) per share.
After the EGM, Dissenting Shareholders may elect to receive the Exit Consideration between the period of May 21, 2024 and May 27, 2024.
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.
MRS has 342,884,708 outstanding shares. At the end of trading on Tuesday, the share price of MRS Oil Nigeria Plc closed at ₦135.00, putting its market capitalization at ₦46.28 billion.
MRS Africa Holdings Limited is the largest shareholder of the company with 205,730,806 shares representing 60% of the company’s shares.
Over the last 52 weeks, the share price of the company has moved from a low of ₦30.70 to its current high of ₦135.00.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
