By Uzor Odigbo
The National Council of the Nigerian Stock Exchange (NSE) has announced the chief executive officers of its operating and non-operating companies.
The appointment is put in place upon the completion of its ongoing ‘demutualisation’ exercise.
Demutualisation refers to a process by which a private company legally changes its structure, in order to become a public-traded, profit-making company owned by shareholders. On Wednesday checks revealed that the new appointments are subject to the approval of the Securities and Exchange Commission. Details of the announcement showed that Oscar Onyema, the chief executive officer of the NSE, has been appointed Group Chief Executive Officer of the Nigerian Exchange Group Plc.
Similarly, Temi Popoola was appointed the Chief Executive Officer of the Nigeerian Exchange Limited while Tinuade Awe was appointed Chief Executive Officer of the NGX Regulation Limited.
Under the demutualisation plan, a new non-operating holding company, the Nigerian Exchange Group plc (NGX Group) has been created. The group will have three operating subsidiaries – Nigerian Exchange Limited (NGX), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulatory arm; and NGX Real Estate Limited (NGX RELCO), the real estate company.
Recall that on March 30, 2017, members of the Nigerian Stock Exchange passed a resolution at an Extra-Ordinary General Meeting of the NSE specifically authorising the National Council to commence the process that will culminate in the exchange being demutualised.
Consequent upon the approval, NSE has worked assiduously with the mandated financial advisers (Chapel Hill Denham Advisory Limited and Rand Merchant Bank Nigeria Limited who are the Financial Advisers) as well as Aluko & Oyebode and Pedabo —Legal and Tax Advisers respectively.
It has also worked with the regulatory Demutualisation Advisory Committee to achieve the various milestones that will now culminate in the exchange being demutualised.
For the NSE, a key aspect of its vision of becoming Africa’s preferred exchange hub is to successfully demutualize the organization. Having met the necessary requirements of the Securities and Exchange Commission (SEC), the Exchange had also obtained a letter of ‘No Objection’ to enable it to proceed to the final stages of the demutualization process.
The NSE has also continued to sensitize its stakeholders on the process of demutualisation.
