MRS Oil to Voluntarily Delist from NGX, Move to NASD OTC Exchange

MRS Oil Finalizes Plans for Voluntary Delisting from NGX

MRS Oil Nigeria Plc has confirmed its voluntary delisting from the Nigerian Exchange Ltd. (NGX), with plans to migrate to the NASD OTC Securities Exchange. The company disclosed this move in a corporate statement released on Friday, following shareholder approval at an Extraordinary General Meeting (EGM) held on June 25, 2024.

The delisting process is in compliance with NGX regulations, specifically Rule 1.10 and Rule 1.13(f) of the NGX’s rules governing equity securities delisting. Shareholders who either dissented or were absent from the EGM will have the opportunity to sell their shares through a structured payout scheme, pending final approvals from the Securities and Exchange Commission (SEC) and NGX.

MRS Oil to Offer Payout Plan for Dissenting Shareholders

As part of the voluntary delisting process, MRS Oil will buy back shares from shareholders who do not wish to migrate to the NASD OTC platform. The company will comply with NGX regulations by setting aside the required funds to compensate shareholders who opt for the payout.

Key details of the payout plan include:

• The registrar will maintain an account for three months, allowing eligible shareholders to claim their payments.
• Shareholders who do not claim their funds within the three-month period will automatically be migrated to the NASD OTC platform.
• Unclaimed funds will be reabsorbed by MRS Oil after the deadline.
• The registrar will submit a detailed report to SEC listing all shareholders who exited through the payout.

The payout window for shareholders will be open from April 4 to July 2024.

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Caution Advised as Delisting Process Nears Completion

MRS Oil has advised shareholders and the investing public to be cautious when trading the company’s shares during this transition period. The company has assured stakeholders that all necessary updates will be provided upon receiving final regulatory approvals from SEC and NGX.

The voluntary delisting aligns with MRS Oil’s broader strategy to restructure its capital market presence, ensuring a more flexible trading environment through its move to the NASD OTC platform.

What This Means for MRS Oil Shareholders

For shareholders, this delisting means:

1. Exit opportunity – Those who do not want to migrate to NASD OTC can sell their shares via the payout scheme.
2. Continued trading on NASD OTC – Those who remain will have their shares automatically moved to the NASD platform, which offers an alternative over-the-counter trading environment.
3. Regulatory compliance – MRS Oil is ensuring compliance with SEC and NGX regulations, ensuring a smooth transition for investors.