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The board of the Nigerian Exchange (NGX) is to be reconstituted to reflect new shareholding structures.
The board of the Nigerian Exchange Group, owners of the Nigerian Exchange now includes UBA nominees ltd and Cardinal Stone Partners ltd as shareholders with substantial interest.
We understand the board of the exchange will now be reconstituted to reflect the shareholdings.
Background
Recent shareholder squabbles have raised issues around corporate governance at The Exchange forcing the group to issue a press release.
Critics had raised concerns over the planned private equity raise of about N35 billion, the staff shareholding incentive scheme, and the tenure of current Group Chief Executive Officer, Oscar Onyema.
The Exchange denied all of the accusations in the press release.
New Board?
According to information shared with Nairametrics, the board of the Nigerian Exchange Group, owners of the Nigerian Exchange now includes UBA nominees ltd and Cardinal Stone Partners ltd as shareholders with substantial interest.
A source in one of the owner’s firms who did not want his name to be mentioned who confirmed the reconstitution to reflect the shareholdings on inquiry said: “Yes, we will finalise the resolution tomorrow at the Group’s Annual General Meeting. I don’t have more things to say now but the idea is laudable.
“It is because the incoming partners saw value and potential in the shares of NGX Group that made them to be part of the ownership. NGX has a good prospect not only in Nigeria but internationally. Investors look at value before venturing in”.
Multiple sources also suggest there is pressure to outs the current Chairman of NGX Via an AGM set to take place on September 30th, 2022.
Capital Raising
The Group intends to seek shareholders’ approval at tomorrow’s 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, in line with the Company’s and NGX Group’s strategy.
“As captured in the notice of the AGM, the Company does not intend to raise the entire amount in USD. NGX Group has also identified viable investment opportunities in line with its strategic expansion plans, including deepening investments in the existing portfolio companies to ensure high and steady dividend returns.
NGX Group is therefore on course with its long-term strategy which will ensure it provides competitive returns for its investors”.
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