Key Points:
- MRS Oil Nigeria, led by billionaire Sayyu Dantata, plans to delist from the NGX pending regulatory approvals.
- Shareholders greenlighted a buyback and capital reduction, paving the way for a move to NASD OTC Securities Exchange.
- The decision marks a strategic shift for MRS Oil amid a revenue surge to $62.6 million in the first quarter of 2024.
MRS Oil Nigeria Plc, a prominent oil marketing company majority-owned by billionaire businessman Sayyu Dantata, has received shareholder assent to delist its shares from the Nigerian Exchange (NGX), marking a significant strategic shift in its corporate trajectory.
MRS Oil strategizes with delisting move
The decision, sanctioned during an Extraordinary General Meeting convened on June 25 in Victoria Island, Lagos, underscores MRS Oil’s proactive stance in realigning its market position.
The “Voluntary Delisting” initiative remains subject to regulatory green lights, with concurrent plans to amend the company’s Memorandum and Articles of Association to facilitate a share buyback and capital reduction.
MRS Oil shareholders back NASD OTC listing, buyback plan
According to resolutions passed, shareholders endorsed listing MRS Oil on the NASD OTC Securities Exchange post-delisting, ensuring adherence to Securities and Exchange Commission guidelines on trading unlisted securities.
The board also secured approval for a comprehensive share buyback scheme, tailored to accommodate dissenting shareholders under terms and volumes dictated by regulatory frameworks.
Empowered by shareholder support, the board is authorized to execute pivotal actions, including contractual agreements, advisor appointments, and strict adherence to regulatory directives.
MRS Oil Nigeria’s market cap hits $30.7 million
MRS Oil Nigeria, renowned for its robust operations across Nigeria and several West African countries including Benin, Togo, Cameroon, and Côte d’Ivoire, boasts a total market capitalization of $30.7 million, underscoring its regional significance as the 46th most valuable entity on the NGX.
Financially, MRS Oil reported a notable revenue surge to N79.16 billion ($62.6 million) for the first quarter of 2024, up from N30.78 billion ($23.83 million) in the same period last year, as indicated in recent financial disclosures.
Sayyu Dantata, half-brother to Africa’s richest man, Aliko Dangote (founder and chairman of Dangote Group), holds a 60 percent stake in MRS Oil Nigeria, representing 205,730,806 shares. This controlling interest, held through MRS Africa Holdings, solidifies Dantata’s position among Nigeria’s most affluent individuals.
