The Nigerian Stock Exchange(NSE) has been given final approval of its demutualisation plan from the Securities and Exchange(NSE) has received final approvals of its demutualisation plan from the Securities and Exchange Commission(SEC) and Corporate Affairs Commission (CAC) respectively. With these approvals , The Exchange has now rounded-up its demutualisation process.
Under the demutualisation plan , a new non- operating company, the Nigerian Exchange Group Plc(NGX Group) has been developed. The group will have three operating subsidiaries namely; Nigerian Executive 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. All the entities have been been duly registered at the CAC.
Otunba Abimbola Ogunbanjo, NSE Council President said ‘ successful demutualisation was one of my fundamental objectives when I assumed the Presidency of The Exchange. The SEC decision today to approve the NSE’s demutualisation plan 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 trading at the exchange and now looking forward to the future public of its shares on NGX Limited. On behalf of the NSE, I would like to thank all those that have worked assiduously to achieve this watershed event on our journey to make NSE a multi-faceted that extends across various markets and geographical regions’.
The approval also enables the shares of the NGX Group Plc, which have been registered with the SEC, to be allotted to the members pursuant to the Court Approved Scheme of arrangement. Ahead of its listings 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 will serve as the inaugural Chairman of NGX Group Plc’s Board of Directors