The management of Nigerian Exchange (NGX) Group Plc failed to tender the request to raise funds from the equity market at their 61st Annual General Meeting (AGM) in Lagos on Friday.
Ripples Nigeria reported that the NGX Group had written to the company’s shareholders before the AGM and requested N35 billion to run its operation.
The management planned to raise N20 billion from the equity market with N15 billion expected to come from debt.
NGX Group had planned to present a request for shareholders’ approval on Friday.
However, following a court case between some shareholders led by Olayinka Olajuwon and Bamidele Ibironke, and the NGX Group, the management suspended the presentation to allow for further consultation.
Olajuwon and Ibironke had threatened to sue NGX Group if the company proceeded with the fundraising plan.
The NGX Group later sued the shareholders to prevent them from stopping the AGM.
The shareholders also filed an interlocutory injunction at the Federal High Court, Lagos, in a bid to stop the company from going ahead with the meeting.
The Chairman of the company’s board, Abimbola Ogunbanjo, had also resigned from the position.
Ogunbanjo’s decision followed criticism of the company’s management by the shareholders.
Apollos Ikpobe was appointed as acting chairman.
Speaking on his exit from the firm, Ogunbanjo said: “In closing, I would like to thank the board and management of NGX Group for their support since I assumed office as chairman of the group in 2021.
“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.”
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