The Nigerian Stock Exchange has completed its demutualisation process.
This is following final approvals of its demutualisation plan from the Securities and Exchange Commission and Corporate Affairs Commission respectively in a statement titled, ‘NSE completes demutualisation – SEC and CAC approve.’
Under the demutualisation plan, a new non-operating holding company, the Nigerian Exchange Group Plc ‘NGX Group’ has been created, the statement explained.
The Group will have three operating subsidiaries, namely, Nigerian Exchange Limited, the operating exchange; NGX Regulation Limited, the independent regulation company; and NGX Real Estate Limited (NGX RELCO), the real estate company. All the listed entities have been duly registered at the CAC, according to the statement.
NSE Council President, Abimbola Ogunbanjo was quoted saying, “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 demutualization plans brings this aspiration to a successful conclusion in a process that included the passage of the Demutualization 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 statement said 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.
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.
The transition plan will also see the inauguration of Boards for each of the new entities, staff reallocation to their respective functions within the operating subsidiaries, operationalization of business plans and budgets, technology systems transfer, and the requisite arm’s length agreements between the entities.
