NGX Group Suspends Plans To Raise N35bn For Business Expansion

NGX ranks second in African market performance over three months
NGX ranks second in African market performance over three months

The Nigerian Exchange Group (NGX) has suspended its plans to raise N35 billion for business expansion.

NGX Group, in a statement, said the decision was made at its 61st annual general meeting (AGM) in Lagos on Friday, where shareholders approved resolutions by the company’s board of directors.

Prior to the meeting, the company had planned to seek the shareholders’ approval at the AGM to raise additional capital of up to N35 billion to fund the business expansion; the growth phase for existing business lines/investments; and investments in identified and carefully curated new targets.

But at the meeting, the shareholders suspended the planned capital raise to allow for more consultations and stakeholder engagement.

NGX Group Suspends Plans To Raise N35bn For Business Expansion

“To allow for wider consultations and further engagement with shareholders, the special business to raise funds of up to N35,000,000,000 (thirty-five billion naira) for business expansion was not presented,” NGX Group said.

Meanwhile, at the AGM, the shareholders also adopted resolutions which included the appointment of Ernst & Young as NGX Group’s external auditors; the board’s authority to fix the audit company’s remuneration; the disclosure of NGX Group’s executive remuneration; and the re-election of the statutory audit committee.

“Also at the meeting, Apollos Ikpobe and Okechukwu Itanyi retired by rotation and were re-elected as non-executive directors. Professor Enase Okonedo’s resignation was earlier approved by the board and as such, she was not presented for re-election,” the company said.

“Otunba ogunbanjo, group chairman, NGX Group, who was due for re-election for one year until the next AGM in 2023, voluntarily retired from the board and did not present himself for re-election.

“While four non-executive directors of the board were re-elected, including Fatimah Bintah Bello-Ismail, Oluwole Adeosun, Chidi Agbapu, Patrick Ajayi.”

Speaking at the AGM, Ogunbanjo thanked shareholders for working assiduously with the board and management of the group in delivering the dividends of demutualisation and enhancing shareholder value and for attaining many firsts during his term in office.

“We released our dividend policy in line with our mandate to shareholders after the completion of our recent extraordinary general meeting,” he said.

“We also created a revised corporate governance framework, already approved by shareholders and consistent with securities regulations to realign the interests of all stakeholders.

“As I retire from the board, I trust that my successor will continue the legacy of service and bring greater accomplishments as the sustainable exchange group championing Africa’s socio-economic growth.”

On his part, Oscar Onyema, chief executive officer, NGX, said the group recorded a 22 percent increase in profitability, a 13 percent increase in gross earnings, and 14.9 percent growth in revenue.

He added that the group intends to enhance its performance going forward and called for support from all stakeholders.

Source: The Cable