Aduragbemi Omiyale
By Aduragbemi Omiyale
The demutualisation of the Nigerian Stock Exchange (NSE) has been completed after the receipt of final approvals from the Securities and Exchange Commission (SEC) and the Corporate Affairs Commission (CAC).
A statement from the exchange on Wednesday disclosed that the approvals of the two agencies signal the transformation of the NSE into a new non-operating holding company called the Nigerian Exchange Group Plc (NGX Group).
With this development, the new entity will have three operating subsidiaries; the Nigerian Exchange Limited (NGX Limited), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulation company; and NGX Real Estate Limited (NGX RELCO), the real estate company, which have all been duly registered with the CAC.
The statement noted that the demutualisation of the NSE will see the inauguration of boards for each of the new entities, staff reallocation to their respective functions within the operating subsidiaries, operationalisation of business plans and budgets, technology systems transfer, and the requisite arm’s length agreements between the entities.
Upon operational launch, the group’s new brands, including a new website, will be unveiled and the group will be in position to execute on its strategic vision.
Also, this will enable the shares of NGX Group Plc, which have been registered with the SEC, to be allotted to the membership pursuant to the court approved scheme of arrangement.
Ahead of its listing on NGX Limited, the shares of NGX Group Plc will be available for bilateral trades to be executed in line with extant rules and regulations of the Nigerian capital market.
“Successful demutualisation was one of my fundamental objectives when I assumed the presidency of the exchange. The SEC’s decision today to approve the NSE’s demutualisation plans brings this aspiration to a successful conclusion in a process that included the passage of the Demutualisation Act through the National Assembly,” Mr Abimbola Ogunbanjo, who is the NSE Council President and will serve as the inaugural Chairman of NGX Group Plc’s board of directors, stated in the statement made available to Business Post.
On his part, the CEO of the NSE and the new Group CEO of NGX Group Plc, Mr Oscar Onyema, noted that, “The Nigerian capital markets should play a role commensurate with Nigeria’s status as Africa’s largest economy.
“We are implementing a series of measures towards this goal, demutualisation being a critical milestone. The completion of demutualisation is a truly significant moment, and we welcome the new possibilities that have opened up for us today.”
