Meanwhile, 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).
With these approvals, the Exchange has now completed its demutualisation process with a Holding Company, HoldCo, structure.
Under the demutualisation plan, a new non-operating Holdco, 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.
The approvals by the SEC and CAC, according to the Exchange, 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.
Commenting on the new structure, Oscar Onyema, the 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. 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.”