…..defends appointments of new directors
The Nigerian Exchange Group Plc (NGX Group) has reiterated its commitment to upholding the highest corporate governance ethics in its operations in furtherance of its long-term strategy to ensure competitive returns for investors in the nation’s equities market.
The Group, in a statement issued on Wednesday, assured that its oversight roles in the capital market will consistently be in the overriding interest of maximizing value for its shareholders.
Clarifying the recent appointment of some directors in the Group, the NGX management stated that the appointment, which was approved by the National Council and the Securities and Exchange Commission (SEC), did not contravene any law or governance codes also based on a resolution of the shareholders at the NSE’s Extra-Ordinary Meeting held on 3 March 2020.
The NGX Group further maintained 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), was made at the Company’s 2021 AGM on 9 September 2021, for the purpose of operationalizing the earlier approval of the establishment of an Employee Stock Ownership Plan (ESOP) in 2020.
It clarified: “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”, the NGX Group added.
On its plans to raise additional capital of N35 billion, the Group stated that said the raised fund would be used for business expansion, growth phase for existing business expansion and fund investments in identified and carefully curated new targets, in line with the group’s strategy, adding that
entire fund will not be raised in USD as indicated in the Notice of the AGM, it does not intend to raise the in dollars.
This is even as it confirmed that had 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 stated: “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.”
