The Nigerian Stock 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 completed its demutualisation process.
Under the demutualisation plan, a new non-operating holding company, the Nigerian Exchange Group Plc (‘NGX Group’) has been created.
The Group will have three operating subsidiaries, namely: 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.
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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 approvals also enable the shares of NGX Group Plc, to be allotted to the membership pursuant to the Court-approved Scheme of Arrangement.
Oscar N. Onyema, the new Group CEO of NGX Group Plc, said: “The Nigerian capital markets should play a role commensurate with Nigeria’s status as Africa’s largest economy. The completion of demutualisation is a truly significant moment, and we welcome the new possibilities that have opened up for us today.”