NGX Group to consolidate business expansion with N35b fresh capital
The Nigerian Exchange Group Plc., (NGX Group) has stated that its proposed N35 billion additional capital will fund its business expansion and other carefully identified new targets in line with the group’s strategy.
In a statement released to the investing public, yesterday, the Group also reiterated its commitment to continue to entrench high levels of corporate governance in its operations as well as ensure that it remains focused with its long-term strategy of providing competitive returns for its investors.
According to the statement, 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, while adding that it is on course with its long-term strategy, which will ensure it provides competitive returns for its investors.
It further explained that the company does not intend to raise the entire amount in dollars as captured in the notice of the AGM.
Reacting further on the media report accusing the management of the NGX Group Plc of running the affairs of the Group ‘without direction’ post demutualisation, the Group assured stakeholders of its commitment to entrench highest level of corporate governance in its operations with the overriding interest of maximising value for its shareholders.
It stated that the appointments of some of its directors, which was approved by the National Council and the Securities and Exchange Commission (SEC) does not contravene any law or governance codes also added that the directors were empowered to establish the scheme further to a resolution of the shareholders at the NSE’s Extra-Ordinary General Meeting held on March 3, 2020.
Additionally, it pointed out that the resolution for the allotment of 200,419,990 ordinary shares of 50 kobo each for the operation of a Long-Term Incentive Plan (LTIP) consisting of a Deferred Bonus Plan (DBP) and an Employee Share Purchase Plan (ESPP), were made at the company’s 2021 AGM on September 9, 2021, for the purpose of operationalising the earlier approval of the establishment of an Employee Stock Ownership Plan (ESOP) in 2020.
It said: “Furthermore, it should be noted that part of the approval granted by the shareholders at the 2021 AGM was for half of the total number of shares proposed for the LTIP being 100,209,995 ordinary shares of 50 kobo each to be purchased by employees under an Employee Share Purchase Plan.
“Under the terms of the ESPP, the shares will be offered at a discount of between 15 – 20 per cent of its market price and will be purchased by employees subject to the fixed cap per employee and availability of the pool.
“The other half relates to deferred bonus under the Deferred Bonus Plan (DBP), which is earned when eligible employees meet set performance standards annually. Neither the DBP nor the ESPP are gifts to the employees. Both are multi-year plans.
“NGX Group would therefore like to assure the investing public that it will continue to uphold the highest corporate governance standards, as it has historically done. We are extremely mindful of due process, our records are verifiable, and we are on course with our long-term strategy execution”, it added.
Recall that the defunct NSE had completed its demutualisation last year, a conversion that led to the creation of the NGX Group and three subsidiaries. They include the Nigerian Exchange Limited (NGX Limited), the exchange, which took over the listing and trading functions of the defunct NSE; NGX Regulation Limited (NGX REGCO), the independent regulation company, which took over the self-regulatory functions of the defunct NSE; and NGX Real Estate Limited (NGX RELCO), the real estate company that took ownership of real estate and other assets, including the iconic Stock Exchange building in Lagos.
NGX Group plans to raise some N35 billion in a mixed issuance of equity and debt offerings in the first post-demutualisation primary market offerings that directly make the shares of the group available to the public.