BANYO TEMITAYO
THE Securities and Exchange Commission and the Corporate Affairs Commission have given the final approval for the demutualisation of the Nigerian Stock Exchange.
With the approval, the NSE has received an all-clear for its conversion from a mutual, member-owned company to a public-traded company, and has completed its demutualisation process.
The NSE, early last year, officially began the process to join 56 other demutualised Stock Exchanges in the world.
This followed an endorsement secured during a Court Ordered Meeting and an Extra-ordinary General Meeting (EGM) held separately in Lagos.
Members approved the transfer of the assets of the existing subsidiaries of the NSE – NSE Consult Limited, NSE Nominees Limited and Coral Properties Limited – to the Nigerian Exchange Group Plc, which has been created with the final approval.
In the demutualisation plan, as approved, the Exchange will have a total share capital of N1,250,000,000, comprising 2,500,000,000 ordinary shares of 50 kobo each to be registered with the CAC.
Members also approved the allotment of 1,964,115,918 ordinary shares to Dealing Members and Ordinary Members in the ratio of 78:22, respectively.
A Claims Review Shares totaling 40,083,999 ordinary shares, representing two per cent of the Issued Shares of the Nigerian Exchange Group, will be set aside for allotment to parties who are adjudged to be entitled to shares in the demutualised Exchange.
The Nigerian Exchange Group Plc will, according to the plan, also have three operating subsidiaries, which have been registered with the CAC – 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.
President, Nigerian Stock Exchange, Abimbola Ogunbanjo, expressed excitement at the successful demutualisation, saying it was one of his fundamental objectives when he took over leadership at the Exchange.
He said, “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.”
On his part, Chief Executive Officer, NSE, Oscar Onyema, welcomed the new possibilities opened up by the completion of the demutualisation process.
He said, “At the Nigerian Stock Exchange, 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.”
