The Nigerian Stock Exchange (NSE) has finally completed its demutualization process, following statutory approval from the Securities and Exchange Commission (SEC) and Corporate Affairs Commission (CAC) respectively.
This is according to a disclosure made available on the website of the Nigerian Stock Exchange and seen by Nairametrics.
Recall that members of the NSE had in March 2020, passed requisite resolutions for the demutualization of the Exchange at a Court-Ordered meeting and an Extraordinary General Meeting. As part of the demutualization process, The Exchange (which is a company limited by guarantee) would be converted into and re-registered as a public company limited by shares, with three operating subsidiaries.
In lieu of this, a new non-operating holding company known as The Nigerian Exchange Group Plc (‘NGX Group’) was formed. It has three operating subsidiaries, namely: Nigerian Exchange Limited (NGX Limited), NGX Regulation Limited (NGX REGCO), and NGX Real Estate Limited (NGX RELCO) which have been duly registered at the CAC.
What this means
The recent regulatory approval from SEC and CAC empowers the NSE to activate its Transition Plan to a new operational structure and holding company. The plan covers legal and practical changes that will facilitate the operationalization of the new corporation structure. The goal here is to enable a seamless transition of the Group and market participants without a disruption in service.
With the activation of ‘The Transition Plan’, a new Board for each of the new entities will be inaugurated, staff functions will be reallocated within the new operating subsidiaries, a new business plan and budget will be operationalized, a new website will be unveiled, among others.
In addition, the recent regulatory approval will enable the shares of the new Group (NGX Group Plc) to be allotted to the membership pursuant to the Court-approved Scheme of Arrangement. Ahead of its listing on NGX Limited, the shares of NGX Group Plc will be available for bilateral trades to be executed in line with extant rules and regulations of the Nigerian capital market.
What they are saying
Commenting on the recent development, NSE Council President, Otunba Abimbola Ogunbanjo said: “Successful demutualization was one of my fundamental objectives when I assumed the Presidency of The Exchange. The SEC’s decision today to approve the NSE’s demutualization plans brings this aspiration to a successful conclusion in a process that included the passage of the Demutualization Act through the National Assembly. We are elated that this milestone has been achieved as we celebrate the 60th anniversary of the commencement of trading at the Exchange and now look forward to the future public listing of its shares on NGX Limited. On behalf of the NSE, I would like to warmly thank all those that have worked assiduously to achieve this watershed event on our journey to make the NSE a multifaceted exchange that extends across various markets and geographical regions.”
On the other hand, the new Group CEO of NGX Group Plc, Oscar N. 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, demutualization being a critical milestone. The completion of demutualization is a truly significant moment, and we welcome the new possibilities that have opened up for us today.”
What you should know
- The NSE had earlier announced the inauguration of a 5-man claims review panel in preparation for the demutualization process.
- Nairametrics had earlier reported the appointment of Oscar Onyema, Temi Popoola and Tinuade Awe as CEOs of NGX Group, NGX Limited and NGX REGCO respectively.
- It is also worthy to note that Mr. Otunba Ogunbanjo will serve as the inaugural Chairman of NGX Group Plc’s Board of Directors.
Covid-19: WHO approves China’s Sinopharm vaccine
WHO has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination.
The World Health Organization (WHO) has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination. The vaccine is reported to have 79% efficacy against covid.
This was disclosed today in a report by Reuters. The vaccine would also be the second Chinese-made vaccine after Sinovac vaccine and would be the first developed outside Europe and North America to receive WHO accreditation.
“This expands the list of COVID-19 vaccines that COVAX can buy, and gives countries confidence to expedite their own regulatory approval, and to import and administer a vaccine,” WHO Director-General, Tedros Adhanom Ghebreyesus said.
The WHO added that the easy storage requirements make it highly suitable for low-resource settings.
“Its easy storage requirements make it highly suitable for low-resource settings,” a WHO statement said while also disclosing that the vaccine has been approved for people above the age of 18 to receive two shots.
“On the basis of all available evidence, WHO recommends the vaccine for adults 18 years and older, in a two-dose schedule with a spacing of three to four weeks,” the statement added.
The vaccine was created by Beijing Biological Products Institute, a subsidiary of Sinopharm subsidiary China National Biotec Group, with an efficacy of 79% for all age groups.
The WHO however, admitted that few older adults (over 60 years) were enrolled in clinical trials, so efficacy could not be estimated in this age group.
In case you missed it
The quest for vaccine efficiency got a major boost earlier this week as Nairametrics reported that the United States government announced that it supports the waiver of Intellectual Property Protections on Covid-19 vaccine development, in a bid to boost the fight against the pandemic, and says it will participate in the Okonjo-Iweala-led WTO negotiation to make it happen.
“Mama Taraba”, Former minister and senator, Aisha Al-Hassan is dead
Ex-Women Affairs minister, Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead
A former Minister for Women Affairs and ex-Governorship Candidate in Taraba State, Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead.
According to media reports she died in a hospital on Friday in Cairo, Egypt at the age of 61.
Al-Hassan, who was a former senator of the Federal Republic of Nigeria from Taraba North Senatorial District, was the All Progressive Congress (APC) Governorship Candidate for Taraba in the 2015 general elections.
She later contested for the same seat on the platform of the United Democratic Party in the 2019 general elections after resigning from APC and as a minister in the administration of President Muhammadu Buhari on July 27, 2018.
The former senator was born on the 16th of September, 1959 in Jalingo, Taraba State, to Alhaji Abubakar Ibrahim, Sarkin Ayukan Muri.
Aisha Jummai Al-Hassan attended Muhammed Nya Primary School, Jalingo and LEA Primary School, Tudun Wada, Kaduna before proceeding to Saint Faith College (now GGSS) Kawo Kaduna where she studied between January 1973 and June 1977.
Nairametrics | Company Earnings
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