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DEMUTUALISATION: NSE receives SEC, CAC approval to create three subsidiaries
The Nigerian Stock Exchange (NSE) has been given approval to transition into a non-operating holding company, which will lead to the creation of Nigerian Exchange Group Plc (NGX Group).
The NGX Group will have three operating subsidiaries under its control. The three entities are operating Exchange called Nigerian Exchange Limited (NGX Limited), independent regulation company, NGX Regulation Limited (NGX REGCO).
The last of the subsidiaries is a real estate company, which will be known as NGX Real Estate Limited (NGX RELCO). In a statement released by the NSE, these three subsidiaries have been registered at the Corporate Affairs Commission (CAC).
The change in NSE structure is a demutualisation plan of the Nigerian bourse to create new strategic opportunities. The approval for the transition was issued by Securities and Exchange Commission (SEC) and CAC.
READ ALSO: Naira records 0.15% gain against dollar at exchange market
Commenting on the new development, Otunba Abimbola Ogunbanjo, NSE Council President, said, “Successful demutualisation was one of my fundamental objectives when I assumed the Presidency of The Exchange.
“The SEC’s decision today to approve the NSE’s demutualisation plans brings this aspiration to a successful conclusion in a process that included the passage of the Demutualisation Act through the National Assembly.
“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.” Ogunbanjo said.
According to NSE statement, “The approvals also 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.
“Ahead of its listing on NGX Limited, the shares of NGX Group Plc will be available for bilateral trades to be executed in line with extant rules and regulations of the Nigerian capital market.” the statement reads in part.
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