[Nigeria] NSE receives No-Objection approval to its demutualization plan
The Nigerian Stock Exchange (NSE) announced that the Securities and Exchange Commission of Nigeria (SEC) did not object to its planned conversion from a not-for-profit entity limited by guarantee into a profit-making, public limited liability company owned by shareholders.
The Letter communicating the “No Objection” from the SEC is dated 23 December 2019 and was signed by Mr. Emomotimi Agama, Head, Registration, Exchanges, Market Infrastructure and Innovation Department. The receipt of the No Objection constitutes the satisfaction of a condition precedent to the planned demutualization of the NSE.
Commenting on this development, Mr. Oscar N. Onyema, OON, Chief Executive Officer, NSE said, “We are very pleased to receive the Securities and Exchange Commission’s No-Objection to our plan to demutualize. With this consent, the Exchange will proceed quickly to the next phase of holding a Court Ordered Meeting and an Extraordinary General Meeting to pass requisite resolutions including the approval of the draft Constitution; basis of allotment and split of shares between members; approval of new Board of Directors; and approval of new corporate governance and regulatory structures.”
Also commenting, Otunba Abimbola Ogunbanjo, President, National Council, NSE stated that “We have passed yet another important milestone in our quest to become a demutualised Exchange. Members of the Exchange in March 2017 passed crucial resolutions that authorised the Council and Management to proceed with the process leading up to the demutualisation of the Exchange. We will continue to work with relevant regulators to ensure the exercise is completed accordingly and assure stakeholders of transparency throughout the process.”
On August 29, 2018, President Muhammadu Buhari signed the Demutualisation of The Nigerian Stock Exchange Bill (Demutualisation Bill or the Bill) into law. The Bill authorizes NSE to convert to a shareholder-owned public company limited by shares.