Following a unanymous vote from the members of the Nigerian Stock Exchange (NSE) towards requisite resolutions for the demutualisation of the exchange, the nation’s bourse could well be on its way to becoming a demutualised exchange.
Hundred per cent of its members at a Court Ordered Meeting (COM) yesterday in Lagos voted and assented to 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 and the establishment of a separate subsidiary company to be charged with the regulatory functions of the exchange post-demutualisation to be called NGX Regulation Limited.
The members also gave its approval to the total share capital being N1.25 billion comprising 2.5 billion ordinary shares of 50 kobo each to be registered with the Corporate Affairs Commission (CAC), allotment of 1.96 billion ordinary shares to Dealing Members and Ordinary Members on the basis of a ratio of 78:22, respectively.
Furthermore, members reconvened for the Extraordinary General Meeting (EGM) to determine the Board of Directors of the demutualised Exchange, and explore the implementation of an Employee Share Ownership Plan (ESOP).
Speaking at the EGM, President of the National Council, NSE, Otunba Abimbola Ogunbanjo, who was nominated and appointed as the Chairman and Non-Executive Director, said, he was happy that the demutualisation process was nearing its final approval and thanked the Federal Government, the Securities and Exchange Commission (SEC) and other capital market stakeholders for their efforts in making the process a successful one. “19 years after initiating the process to demutualise and on the 60th anniversary of the Exchange, we are close to achieving the goal. The successful demutualisation of the Exchange was one of my main objectives when I assumed the Presidency of the Exchange and I am particularly happy it has been achieved during the life time of one of its founding fathers, Pa Akintola Williams”, He said.
Corroborating Ogunbanjo, the Chief Executive Officer, NSE, Oscar Onyema, said, that with the meetings held yesterday, demutualisation process of the exchange has been moved significantly forward and the positive outcomes affirm the great interest from members to support the pivotal restructuring of the exchange to become globally competitive.
Onyema said, “In furtherance of our plans, we will move to file the necessary resolutions from the COM and all other required documents at the CAC and SEC, obtain the Court Order sanctioning of the Scheme, complete all necessary registrations and seek the final approval from the SEC to ultimately demutualise”.
Commenting on the development, Prof. Ndi Okereke-Onyiuke, former NSE Director-General, expressed satisfaction to the outcome of the meetings, noting that demutualisation was good for the whole Nigerians.
“Though we started it but it did not happen, but we have been following through to ensure it happens.