By Chinwendu Obienyi
The Nigerian Exchange Group (NGX) has suspended its plan to raise N35 billion for business expansion.
The Exchange in a statement, said the decision was made at its 61st Annual General Meeting (AGM) in Lagos at the weekend 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 stepped down the planned capital raising to allow for more consultations and stakeholder engagements.
Furthermore, the Group Chairman of NGX Group, Otunba Abimbola Ogunbanjo, who was due for re-election for another period of one year until the next AGM in 2023, voluntarily retired from the board without present himself for re-election.
The resignation and stepping down the equity raise might not be connected with the legal tussle rocking the Exchange over the validity of the AGM.
Meanwhile, at the AGM, 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.
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 per cent increase in profitability, a 13 percent increase in gross earnings, and 14.9 per cent growth in revenue.
He added that the group intends to enhance its performance going forward and called for support from all stakeholders.