The demutualisation of the Nigerian Stock Exchange (NSE) has been completed, following the final approvals of its demutualisation plan received from the Securities and Exchange Commission (SEC) and Corporate Affairs Commission (CAC) respectively, the Exchange announced on Wednesday.
According to NSE, a new non-operating holding company, the Nigerian Exchange Group Plc (‘NGX Group’) has been created under the demutualisation plan.
The Group will have three operating subsidiaries duly registered at the CAC, namely: 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.
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The approvals by the SEC and CAC signify that the NSE can now activate its Transition Plan to a new operational structure and holding company.
Under the Transition Plan, there will be inauguration of Boards for each of the new entities, staff reallocation to their respective functions within the operating subsidiaries. The Group’s new brands, including a new website, will be unveiled upon Operational Launch, NSE said.
“Successful demutualisation was one of my fundamental objectives when I assumed the Presidency of The Exchange,” Otunba Abimbola Ogunbanjo, NSE Council President, said. She added that 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.”
According to NSE, the approvals also enable the shares of NGX Group Plc, to be allotted to the membership pursuant to the Court-approved Scheme of Arrangement.
NSE members approved the listing by introduction of NGX Group Plc on NGX Limited at its last Annual General Meeting.
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.
Otunba Ogunbanjo will serve as the inaugural Chairman of NGX Group Plc’s Board of Directors.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
