SEC, CAC Finally Grant Approval To NSE Demutualisation Plan

The Nigerian Stock Exchange has got approval from the Securities and Exchange Commission and Corporate Affairs Commission to create a new non-operating holding company, the Nigerian Exchange Group Plc.

The NSE said this on Wednesday.

With the approvals by the SEC and CAC, it implies that the NSE can now activate its Transition Plan to a new operational structure and holding company.

Following the new structure, the Group would have three operating subsidiaries.

They are the Nigerian Exchange Limited, the operating exchange; NGX Regulation Limited, the independent regulation company; and NGX Real Estate Limited, the real estate company.

The NSE said, “All the entities have been duly registered at the CAC. The approvals by the SEC and CAC signify that the NSE can now activate its Transition Plan to a new operational structure and holding company.

“The Transition Plan will also see the inauguration of Boards for each of the new entities, staff re-allocation 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.”

The NSE disclosed that upon operational launch, the Group’s new brands, including a new website, will be unveiled and the Group will be in a position to execute on its strategic vision.

Oscar Onyema, who has become the new CEO of NGX Group Plc, said the approval would position the bourse to harness the African investment space.

Onyema 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.

“We are implementing a series of measures towards this goal, demutualisation being a critical milestone. The completion of demutualisation is a truly significant moment, and we welcome the new possibilities that have opened up for us today.”