By Nkiruka Nnorom
The dealing member firms of the Nigerian Stock Exchange (NSE), Tuesday, assented to the resolutions converting the Exchange to a public company from a mutual entity.
The approval was given at the Court-ordered Meeting (COM) and Extra-ordinary General Meeting (EGM) held in Lagos.
Having obtained the approval from the dealing members, the Exchange would now proceed to obtain the Court Ordered sanctioning of the Scheme of Arrangement for the demutualisation as well as the final approval from the Securities and Exchange Commission (SEC) to ultimately demutualise.
With the approval, the Chief Executive Officer, Mr. Oscar Onyema, becomes the managing director while the president of the National Council of the NSE, Mr. Otunba Abimbola Ogunbanjo, becomes the Chairman, Board of Directors of a 12-man Board.
Part of the resolutions reached at the meeting include the re-registration of the Exchange changing the corporate name from the ‘Nigerian Stock Exchange’ to Nigerian Exchange Group Plc; establishment of a separate subsidiary company – NGX Regulation Limited – to be charged with the regulatory functions of the Exchange post-demutualisation; and transfer of its securities exchange licence and other assets required to carry out the securities function to Nigerian Exchange Limited.
Other resolutions include the registration of total share capital of N1.25 billion comprising 2.5 billion ordinary shares of 50 kobo each with the Corporate Affairs Commission (CAC); allotment of 1.96 billion ordinary shares to the dealing members and ordinary members on a ratio of 78:22, respectively and provision of Claims Review Shares totalling 40.08 million ordinary shares, representing two percent of the issued shares of Nigerian Exchange Group which would be set aside for allotment to parties who are adjudged as being entitled to shares in the demutualised Exchange.
Speaking at the EGM, President of the National Council, NSE, Otunba Abimbola Ogunbanjo, said: “I feel elated that 19 years after initiating the process to demutualize and on the 60th anniversary of the Exchange, we are close to achieving the goal.
“The successful demutualization 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.
Commenting on the successful outcomes at the meetings, Chief Executive Officer, NSE, Mr Oscar Onyema, said, “Today’s meetings move the demutualization process significantly forward and the positive outcomes affirm the great interest from members to support the pivotal restructuring of the exchange to become globally competitive.
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.”