Shareholders Support MRS Oil Nigeria’s Delisting from Nigerian Exchange

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Several shareholders of MRS Oil Nigeria Plc have expressed their support for the company’s plan to delist from the Nigerian Exchange (NGX).

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Matthew Akinlade, a shareholder and director of MRS Oil Nigeria, stated that the delisting would not adversely affect investors. He emphasized that this move would reduce regulatory costs and allow the company to expand and become more profitable.

“Delisting from the NGX will reduce costs associated with regulatory fees and will not impact the company’s performance. In recent times, other companies have delisted and moved to NASD to cut costs,” Akinlade told Sunday PUNCH. “This decision has no negative implications for investors. The company is growing and profitable, and we will continue to hold our annual general meetings.”

The Board of Directors of MRS Oil Nigeria has proposed a voluntary delisting of the company’s shares from the NGX. This was disclosed in a notice of an extraordinary general meeting filed with the exchange on Friday. The proposal involves removing 342,884,706 ordinary shares from the NGX’s daily official list and Main Board.

The notice highlighted that the decision was influenced by regulatory requirements, administrative and compliance costs, new opportunities, changing market conditions, and the company’s long-term plans for financial and operational growth.

“The board, after 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 growth, proposes to delist the company’s shares from the NGX,” the notice explained.

Moses Igbrude, National Coordinator of the Independent Shareholders Association of Nigeria, assured shareholders that MRS Oil Nigeria would remain a public limited company and continue performing its functions. “There won’t be much difference as it will still be a public limited company but not listed on the exchange. The same operations can be carried out on the floor of the NASD,” Igbrude noted. “The market will shrink, losing revenue and reducing in number, which are the major implications.”

Economy and capital market analyst Rotimi Fakayejo added that the delisting would benefit shareholders by lowering post-listing charges and minimizing penalties for reporting delays. “For the market, there will be less visibility of the stock, which is a setback. However, for the company and its stakeholders, it is advantageous due to reduced fees and fewer penalties,” Fakayejo explained. “After the delisting, the board will ensure that the company’s shares are accepted on the NASD OTC Securities Exchange, considering shareholders’ trading needs.”

MRS Oil Nigeria’s shares remained flat, closing at N135 at the end of the week’s trading and appreciating by 263.88% over the past year. The oil marketing firm was originally listed on the Nigerian Exchange on January 1, 1978, as Chevron Oil Nigeria and rebranded to MRS Oil Nigeria in 2009.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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