Members of the Nigerian Stock Exchange (NSE) have voted to re-register the bourse as part of its demutualization process.
THE WHISTLER had reported on February 7, 2020 that the members of the NSE would vote for the demutualisation in March, which will allow the local bourse to trade on its exchange and consequently adopt a new name.
The resolution of the meeting was announced by the bourse on Tuesday, at the Extraordinary General Meeting (EGM), which held at Grand Banquet Hall, Civic Centre, Victoria Island, Lagos, where they announced that the bourse would re-register as Nigeria Exchange Group Plc.
The re-registration of the Exchange as Nigerian Exchange Group Plc.
The transfer of its securities exchange licence and other assets required to carry out the securities function to Nigerian Exchange Limited.
The establishment of a separate subsidiary company to be charged with the regulatory functions of The Exchange post-demutualization to be called NGX Regulation Limited.
The total share capital being N1,250,000,000 (One Billion Two Hundred and Fifty Million Naira) comprising 2,500,000,000 (Two Billion and Five Hundred Million) ordinary shares of 50 kobo each to be registered with the Corporate Affairs Commission (CAC).
The allotment of 1,964,115,918 (One Billion, Nine Hundred and Sixty-Four Million, One Hundred and Fifteen Thousand, Nine Hundred and Eighteen) ordinary shares to Dealing Members and Ordinary Members on the basis of a ratio of 78:22, respectively.
The provision of Claims Review Shares totalling 40,083,999 (Forty Million, Eighty-Three Thousand, Nine Hundred and Ninety-Nine) ordinary shares, representing 2% of the Issued Shares of Nigerian Exchange Group, will be set aside for allotment to parties who are adjudged as being entitled to shares in the demutualised Exchange.
The transfer of the assets of NSE Consult Limited, NSE Nominees Limited and Coral Properties Limited – existing subsidiaries of The NSE – to the Nigerian Exchange Group Plc.
Reacting, president of the National Council, NSE, Otunba Abiola Ogunbanjo, expressed delight over the completion of the demutualization process, and recognised the efforts of other stakeholders who made the initiative attainable.
Recall that the EGM had approved the demutualisation in March 2017, which led to the signing of the demutualization bill into law in 2018.
Securities and Exchange Commission had also in 2019 given its consent to the scheme.
The development would make the bourse a profit making entity and a public limited liability company (Plc), as against being a “not -for -profit entity” which was limited by guarantee.