RMB partners Nigeria Bourse in demutualisation to NGX Group

The Nigerian Bourse has completed the process of its demutualisation, and conversion into Nigerian Exchange Group Plc (NGX Group), with Rand Merchant Bank (RMB) acting as a co-Financial adviser to the demutualisation.

RMB is proud to have assisted the NSE with the provision of critical advice in the evaluation and selection of the most efficient transaction structure and pathway for the execution of the demutualisation process.

The demutualisation of the NSE is a landmark transaction for Nigerian capital markets and economy, with the NSE (now NGX Group)’s position as a primary enabler of growth capital for the economy.

Commenting on the transaction, Michael Larbie, RMB Nigeria CEO & regional head West Africa said, “The demutualisation is a significant milestone, as it joins other exchanges worldwide that have been demutualised. More importantly, it allows the NGX Group to further pursue its strategic thrust of becoming one of the globally recognised capital markets infrastructure platforms. The demutualisation will modernise the NSE and entrench its corporate governance processes, which should help with decision making and creating a robust and attractive platform.”

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“The demutualisation is a first step in a journey of the exchange becoming publicly traded and having a more public oriented board that allows it to be nimble and react quickly to changes in the economy,” concluded Michael Larbie.

The conversion from a mutual to a public limited liability company required securing the consent and approval of several stakeholders, including the NSE Dealing and Ordinary Members, the National Assembly and Presidency with the passage of a Demutualisation Act into law, the Corporate Affairs Commission and the Securities & Exchange Commission. The NSE has now been reorganised into a Holdco – Nigerian Exchange Group Plc (NGX Group), and three subsidiaries – Nigerian Exchange (NGX) Limited; NGX Regulation (NGX RegCo) Limited; and NGX Real Estate (NGX RelCo) Limited.

The benefits to NGX Group include access to broader capital pools (beyond its membership base), and an improved capacity to unlock growth and expansion opportunities across key markets and segments. Furthermore, an alternative currency for inorganic expansion strategies will be provided. These will all contribute to its global competitiveness.

Oscar N. Onyema, group managing director/CEO, NGX Group in a recent statement said, “I am excited about the opportunities the demutualisation has opened up for us in the coming years. I must reiterate my commitment to ensuring that the NGX Group Plc and its subsidiaries deliver on the mandate to become Africa’s leading capital market infrastructure provider. I look forward to deepening partnerships with existing stakeholders and exploring new collaborations locally and globally to bring this to bear.”