LATEST UPDATES
Card-image-cap

Market | Capital Market

NSE Completes Demutualisation, SEC and CAC Approve

Mar 10, 2021   •   by   •   Source: Proshare   •   eye-icon 1041 views

Wednesday, March 10, 2021 / 09:28 AM / by NSE / Header ImageCredit: Getty


Proshare Nigeria Pvt. Ltd.


TheNigerian Stock Exchange (NSE) has received final approvals of itsdemutualisation plan from the Securities and Exchange Commission (SEC) andCorporate Affairs Commission (CAC) respectively. With these approvals, TheExchange has now completed its demutualisation process.  

 

Underthe demutualisation plan, a new non-operating holding company, the NigerianExchange Group Plc ('NGX Group') has been created. The Group will have threeoperating subsidiaries, namely: Nigerian Exchange Limited (NGX Limited), theoperating exchange; NGX Regulation Limited (NGX REGCO), the independentregulation company; and NGX Real Estate Limited (NGX RELCO), the real estatecompany. All the entities have been duly registered at the CAC.

 

OtunbaAbimbola Ogunbanjo, NSE Council President,said: "Successful demutualisation was one of my fundamental objectives when Iassumed the Presidency of The Exchange.  The SEC's decision today toapprove the NSE's demutualisation plans brings this aspiration to a successfulconclusion in a process that included the passage of the Demutualisation Actthrough the National Assembly. We are elated that this milestone has beenachieved as we celebrate the 60th anniversary of the commencement of trading atthe Exchange and now look forward to the future public listing of its shares onNGX Limited. On behalf of the NSE, I would like to warmly thank all those thathave worked assiduously to achieve this watershed event on our journey to makethe NSE a multifaceted exchange that extends across various markets andgeographical regions."

 

Theapprovals by the SEC and CAC signify that the NSE can now activate its TransitionPlan to a new operational structure and holding company. The extensiveTransition Plan, taking the Group and its subsidiaries through to fullOperational Launch, covers legal and practical changes to enable thefunctioning of the new corporate structure, with no loss of service and aseamless transition for market participants. The Transition Plan will also seethe inauguration of Boards for each of the new entities, staff reallocation totheir respective functions within the operating subsidiaries, operationalisationof business plans and budgets, technology systems transfer, and the requisitearm's length agreements between the entities. Upon Operational Launch, theGroup's new brands, including a new website, will be unveiled and the Groupwill be in position to execute on its strategic vision. Stakeholders, includingour new valued shareholders will benefit from The Group's enhanced CorporateGovernance framework, access to capital to fund strategic developments and amore globally competitive Exchange.

 

Theapprovals also enable the shares of NGX Group Plc, which have been registeredwith the SEC, to be allotted to the membership pursuant to the Court approvedScheme of Arrangement. Ahead of its listing on NGX Limited, the shares of NGXGroup Plc will be available for bilateral trades to be executed in line withextant rules and regulations of the Nigerian capital market. Otunba Ogunbanjowill serve as the inaugural Chairman of NGX Group Plc's Board of Directors.

 

OscarN. Onyema, the new Group CEO of NGX Group Plc, said: "TheNigerian capital markets should play a role commensurate with Nigeria's statusas Africa's largest economy. At the Nigerian Stock Exchange, we have a visionthat the new group will become the premier exchange hub for Nigerian businessesand for the African economy. We are implementing a series of measures towardsthis goal, demutualisation being a critical milestone. The completion ofdemutualisation is a truly significant moment, and we welcome the newpossibilities that have opened up for us today."

 

Demutualisationof the NSE is pivotal in that it creates new strategic opportunities that willenable the Group realise its vision of becoming Africa's leading capital marketinfrastructure provider.  The creation of a holding company and a newcapital structure will also enable NGX Group Plc to form new dynamicrelationships, drive strategic partnerships and gain capital raisingflexibility. It will be recalled that NSE members approved at its last AGM, thelisting by introduction of NGX Group Plc on NGX Limited.


Proshare Nigeria Pvt. Ltd.

 

Related News

1.      Demutualisation:Nigerian Stock Exchange Inaugurates its Claims Review Panel - Jan 08, 2021

2.     Demutualisation: NSE Announces Chief Executives forEmerging Entities - Jan 06, 2021

3.      NSE Demutualisation Receives Boost as Court SanctionsScheme of Arrangement - May 18, 2020

4.      NSE Members Assent to Demutualisation Resolutions atCOM and EGM - May 03, 2020

5.      NSE Set to Hold Strategic Meetings As DemutualizationNears Completion - Feb 12, 2020

6.      Nigeria Stock Exchange (NSE) Prepares ForDemutualisation, Advises Brokers To "Combine" - Feb 07, 2020

7.      NSE Demutualisation Crosses Major Hurdle As BuhariSigns Bill - Sep 27, 2018

8.     An Insight to the Regulatory Issue Arising from theDemutualisation of the NSE - Feb 17, 2018

9.      Members Approved NSE Demutualisation Process - Mar 30, 2017

10.  NSE Announces FinancialAdvisers for Demutualisation?â?ó?óÔÇÜ?¼?óÔé¼?? - Oct 13,2015

11.   Brokers call on SEC board topublish guidelines for demutualisation - Mar 05,2013

12.  Demutualisation of NSE maybegin in Q2 - Mar 01, 2012

13.  SEC Inaugurates NSE'sDemutualisation Committee - Sep 23, 2011

14.  ASHON writes SEC on Council Members, Demutualisation - Apr 13, 2011

15.  NSE restructures ahead of demutualisation plans - Mar 11, 2011

16.  Why a return to demutualisation would be a greatrelief - May 20, 2010

17.   Demutualisation: Nobody will hijack NSE, Onyiuke - 2010

18.  NSE Demutualisation to be Concluded in 2012 - Sep 28, 2010

19.  NSE DG leaves office November 2010, suspendsdemutualisation - Nov, 2010

20. Shareholder leader query NSEs proposeddemutualisation - Jan 19, 2009


Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Get the App

apple-store  play-store

Connect with us


Proshare is a professional practice focused on delivering research and information services to bridge the gap between investors and markets; by delivery on credible, reliable, and timely engagements through the following areas — Impact Research, Market Intelligence, Strategic Advisory, Stakeholder Relations & Digital Media.