The Nigerian Stock Exchange has received final approvals of its demutualisation plan from the Securities and Exchange Commission and the Corporate Affairs Commission.
In a statement on Wednesday, the NSE declared that with the approvals, it had completed its demutualisation process.
“Under the demutualisation plan, a new non-operating holding company, the Nigerian Exchange Group Plc has been created. The group will have three operating subsidiaries – Nigerian Exchange Limited, the operating exchange; NGX Regulation Limited, the independent regulation company; and NGX Real Estate Limited, the real estate company. All the entities have been duly registered at the CAC,” NSE stated.
NSE Council President, Abimbola Ogunbanjo, said, “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.
“We are elated that this milestone has been achieved as we celebrate the 60th anniversary of the commencement of trading at the Exchange and now look forward to the future public listing of its shares on NGX Limited.”
The approvals signified that the NSE could then activate its Transition Plan to a new operational structure and holding company.
“The extensive Transition Plan, taking the group and its subsidiaries through to full Operational Launch, covers legal and practical changes to enable the functioning of the new corporate structure, with no loss of service and a seamless transition for market participants,” NSE explained.
The NSE also stated that the approvals would enable the shares of NGX Group Plc, which had been registered with the SEC, to be allotted to the membership pursuant to the Court-approved Scheme of Arrangement.
It further stated that, 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.
The new Group Chief Executive Officer of NGX Group Plc, Oscar Onyema, said, “The Nigerian capital market should play a role commensurate with Nigeria’s status as Africa’s largest economy. At NSE, we have a vision that the new group will become the premier exchange hub for Nigerian businesses and for the African 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.”
The creation of a holding company and a new capital structure would also enable NGX Group Plc to form new dynamic relationships, drive strategic partnerships and gain capital-raising flexibility, the NSE added.
