Ahead of the planned demutualisation, members of the Nigerian Stock Exchange (NSE), unanimously voted to support the listing of the Nigerian Exchange Group Plc (NGXG) on the NSE.
Part of the resolution passed at the 59th yearly general meeting, Wednesday, expectedly the last as a mutual entity subject to the receipt of requisite approvals of relevant regulatory authorities, following the conversion and re-registration of NGXG, to undertake a listing by the introduction of its shares on NGX.
Consequently, the NSE will no longer be wholly owned by its dealing and non-dealing members.
With the conversion and re-registration of the Exchange as Nigerian Exchange Group Plc, the powers of the National Council of the Exchange will be devolved upon the Board of Directors of the Group.
“Today’s vote clears the way for the listing of NGXG and for a new structure that will enable The Exchange to realize its vision of becoming Africa’s leading exchange hub. NGXG Plc will be expected to realize all the benefits of demutualization for its stakeholders and the capital market at large.”
President, NSE National Council, Abimbola Ogunbanjo, expressed the Council’s delight for “the strong endorsement by the members of the Exchange for our listing plans. On behalf of the Council, we wish to thank the Exchange’s management for their outstanding work in the previous year, when they have faced unprecedented challenges such as the coronavirus pandemic.
“It is a tribute to their efforts that the Exchange has continued to work effectively and at the same time has made significant progress in pursuing its strategic development through the listing and other steps.”
NSE Chief Executive Officer, Oscar N. Onyema, who is the Group CEO-designate of NGXG Plc under the new structure, said: “We would like to thank the membership of The Exchange for their overwhelming support of the listing plans. This marks the beginning of the Exchange’s transformation into a listed company with the flexibility to raise additional equity and/or debt capital.
“It is our aim that under this new structure, the Nigerian capital markets will be able to play a role that is commensurate with Nigeria’s status as Africa’s biggest economy. We believe we can become a financial hub for Africa and with the backing of our stakeholders and their continued use of our services this objective can become a reality.”
The Federal High Court (FHC) had in May 2020, authorized the scheme of arrangement for the conversion after shareholders at a court-ordered meeting and extraordinary general meeting in March, approved the scheme and major changes in the organisational structure for the post-demutualisation NSE.
Under the approved scheme, the NSE will transit into a holding company, Nigerian Exchange Group (NEG) Plc, which will be the parent company for the Nigerian Exchange Limited, the successor that will carry on the securities trading business of the Exchange, and other subsidiaries. Shareholders will own shares in NEG Plc, while NEG will own the main company and other subsidiaries.
The demutualisation of the Exchange is subject to the approval of the Securities and Exchange (SEC), which is expected imminently.