MRS Oil Nigeria Plc has announced plans to voluntarily delist its shares from the Nigerian Exchange Limited (NGX) and transition to the NASD Over-the-Counter (OTC) Securities Exchange. The decision, disclosed in a corporate statement filed with the NGX on Friday, follows shareholder approval obtained during the company’s Extraordinary General Meeting (EGM) held on June 25, 2024.
The company cited compliance with NGX Rule 1.10 and Rule 1.13(f) governing the delisting of equity securities, stating that it will offer a “Payout” to shareholders who either opposed or were absent from the meeting where the delisting was approved.
According to the disclosure, this strategic move is designed to streamline operations and provide liquidity through the NASD OTC platform, which caters to unlisted securities and allows for more flexible trading dynamics.
With this transition, MRS Oil joins a growing list of companies opting for alternative capital markets to improve efficiency, reduce regulatory burdens, and maintain shareholder value. The company assured stakeholders that the delisting process would adhere to all legal and regulatory standards.
“The effectiveness of this Payout remains subject to the final approvals of the Securities and Exchange Commission (SEC) and NGX.”
MRS Oil unveiled the key terms of the payout as approved by the SEC.
It said the company would comply with NGX regulations by setting aside the necessary funds to settle dissenting and absentee shareholders.
“The Registrars shall maintain the account for three months, during which eligible shareholders who wish to exit the company may claim their entitlement.
“After the three months, shareholders who have not opted for the payout shall be migrated to the NASD platform and any unclaimed funds shall revert to the Company.