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HomeBusinessSEC, CAC grant final approval for NSE demutualisation plan

SEC, CAC grant final approval for NSE demutualisation plan

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By Samuel Bankole

The Securities and Exchange Commission (SEC) and Corporate Affairs Commission (CAC) respectively have granted the local bourse approval for its demutualisation plan, according to a statement by the Exchange.

The Nigerian Stock Exchange (NSE) said on Wednesday that with these approvals, it has now completed its demutualisation process.

It said that 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,” the local bourse stated.

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In his reaction to the approvals, NSE Council President Abimbola Ogunbanjo 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. He said the approvals signify that the NSE can now activate its Transition Plan to a new operational structure and holding company.

According to him, 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.

He also said that the approvals also will enable the shares of NGX Group Plc, which have been registered with the SEC, to be allotted to the membership pursuant to the Court approved Scheme of Arrangement.

On his part, the new chief executive of NGX Group Plc, Oscar Onyema, said: “The Nigerian capital markets should play a role commensurate with Nigeria’s status as Africa’s largest economy.”

He said the completion of demutualisation is a truly significant moment, and “we welcome the new possibilities that have opened up for us today.”

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