The Nigerian Stock Exchange (NSE) has completed its process of listing on the trading floor.
Under the demutualisation, a new non-operating holding company, the Nigerian Exchange Group Plc (‘NGX Group’), has been created.
The group will have three operating subsidiaries: 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. All the entities have 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’s decision Wednesday 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.
“On behalf of the NSE, I would like to warmly thank all those that have worked assiduously to achieve this watershed event on our journey to make the NSE a multifaceted exchange that extends across various markets and geographical regions.”
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, operationalisation of business plans and budgets, technology systems transfer, and the requisite arm’s length agreements between the entities.
Upon operational launch, the Group’s new brands, including a new website, will be unveiled and the Group will be in position to execute on its strategic vision.
Stakeholders, including our new valued shareholders will benefit from The Group’s enhanced Corporate Governance framework, access to capital to fund strategic developments and a more globally competitive Exchange.