By Munachimso Obienyi
The Nigerian Exchange Group (NGX) has suspended its plans to raise N35 billion for business expansion.
The group in a statement, said the decision was made at its 61st Annual General Meeting (AGM) in Lagos at the weekend, where shareholders approved resolutions, made 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.
However, at the meeting, the shareholders stepped down the planned capital raise to allow for more consultations and stakeholder engagement.
Furthermore, the Group Chairman of NGX Group, Otunba Abimbola Ogunbanjo, who was due for re-election for a period of one year until the next AGM in 2023, voluntarily retired from the board and did not present himself for re-election.
The resignation and stepping down of equity raise, might not be connected with the legal tussle rocking the Exchange over the validity of the AGM.
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.
