Demutualization of the NSE continues apace with court approval to proceed

Another strategic step towards the demutualisation of the Nigerian Stock Exchange (NSE) has been accomplished as a Federal High Court in Lagos has granted an order sanctioning the Scheme of Arrangement.

Prior to this, the bourse had undertaken its Extraordinary General Meeting and Court Ordered Meeting (COM) in March 2020

Commenting on the latest development, the Chief Executive Officer of NSE, Oscar Onyema, said: “The NSE demutualisation process is moving ahead in line with the expected sequence of events, following the conclusion of its Extraordinary General Meeting and Court Ordered Meeting (COM) in March 2020.

“Understandably, in current circumstances, some of the legal and regulatory steps required have taken a little longer than originally expected, but  we have received court sanction for the results of the EGM, in particular the Scheme of Arrangement and we are looking to secure the reregistration of the Exchange as well as the approval of the Securities and Exchange Commission within the coming months.”

Members of the NSE had approved the demutualisation scheme of The Exchange at an EGM in March 2017.

This was followed by the signing of the Demutualisation of The Nigerian Stock Exchange Bill into law in August 2018. In December 2019, the Securities and Exchange Commission of Nigeria in a No Objection letter, gave its consent to the NSE to hold the COM and EGM that would facilitate its conversion from a not-for-profit entity limited by guarantee into a profit-making, public limited liability company owned by shareholders.