One of Nigeria’s oldest downstream players, MRS Oil Nigeria Plc is seeking permission from shareholders to delist from the Nigerian Exchange Ltd and commence share buyback of minority shares.

The company said its board is offering interested shareholders N135 per share to exit the company. But the move is still subject to approval at the next Extraordinary General Meeting of the company on June 25 and July 1, 2024.

“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 de-list the issued shares of the Company, comprising a total of 342,884,706,” MRS said in a regulatory filing on Friday.

MRS added, “The company shall set aside sufficient funds in a custody/escrow account to be domiciled with a registrar or custodian; from which account, the Exit Consideration shall be paid to relevant Dissenting Shareholders.”

MRS was incorporated on August 12, 1969, and listed on the NGX on January 1, 1970, but the company is delisting from the NGX after over five decades in order to allow the company to more efficiently strategise for the improved performance of its operations.

With the new arrangement by the board, MRS said it will remain a publicly traded company and is planning to list on the NASD OTC Securities Exchange.

The company said, “At the EGM, the shareholders of MRS Oil shall consider and if thought fit, approve resolutions authorizing the Voluntary Delisting. Each shareholder entitled to attend and vote at the EGM may vote in favour of, or against, the resolutions in respect of the Voluntary Delisting. The majority vote required at the EGM for the approval of the Voluntary Delisting is at least seventy-five percent (75 per cent) of members present and voting during the EGM in person or by proxy.

“The Voluntary Delisting may trigger the share buy-back and reduction of share capital provisions of CAMA, as the acquisition of the shares of dissenting shareholders who elect to receive the exit consideration will amount to a share buy-back and the payment of funds to these shareholders by the company.”