Demutualisation: NSE appoints two advisers
After years of deliberation on the demutualization of the Nigerian Stock Exchange (NSE), the local bourse on Tuesday announced the appointment of two consortiums as financial advisers on the proposed exercise.
Demutualisation is the process through which any memberowned organisation becomes a shareholder-owned company. Such company could either be listed on a stock exchange or closely held by its shareholders.
The NSE announced the appointment of the consortium of Rand Merchant Bank (RMB) and Chapel Hill Denham (CHD) as financial advisers.
RMB is the corporate and investment banking arm of FirstRand, one of Africa’s largest, listed financial services groups. Chapel Hill Denham is a leading Nigerian investment bank which provides financial advisory services to domestic and international corporations, institutions, governments and individual clients investing in Africa.
The NSE employed a very rigorous and extensive selection process, commencing with a Request for Proposal (RFP) process which began on March 11, 2014 and inviting qualified financial consortia to submit expressions of interest (EOI).
As part of the EOI, potential financial advisors (FAs) were required to express their interests as a consortium of one international and one Nigerian investment bank, where, at least, one party of the consortium had participated in the demutualization of a securities exchange as lead adviser.
The qualifying consortia were sent the RFP and 13 proposals were received by deadline date. These proposals were reviewed extensively and scored (technical and financial considerations) by NSE. After a round of presentations, only three consortia progressed to the final stage.
The NSE management explained that the rigour in its process aims at picking the most competent consortium and extracting the best value for exchange. The Chief Executive Officer of the NSE, Mr. Oscar Onyema, said “This appointment affirms our commitment to achieving the demutualisation of the NSE in a methodical and transparent fashion. This step is pivotal to a professional and successful conversion of the exchange from a member-owned mutual organization to a shareholderowned public limited liability company that aligns with global best practices.”
Onyema reiterated the commitment of the exchange to ensuring that the interests of all members are protected in the demutualisation exercise. “We have implemented a number of initiatives to strengthen and improve governance at the exchange. This demutualisation process will contribute to the sustenance and enhancement of our governance. We are truly encouraged by the support from our stakeholders, particularly our regulator, the Securities and Exchange Commission for creating the appropriate framework to accelerate the process that would engender a more open, transparent and credible exchange.” The Governor of Lagos State, Akinwunmi Ambode, is expected to commission Cadbury’s new state-of-theart manufacturing plant on Friday October 16.
Also expected at the commissioning ceremony is the Executive-Vice President, Integrated Supply Chain, Mondelz International, Mr Daniel Myers and top government officials.
The new plant will boost Cadbury’s production capacity by nearly 37 per cent to meet the surging demand for Bournvita. When fully automated, it will replace an older facility which could not support the necessary expansion plans. It would generate greater efficiencies and enhance the quality of the company’s products to make them more competitive in the market.
From Left, Etisalat Nigeria’s Director, Enterprise Segment, Lucas Dada; Director, Enterprise Development Centre, PanAtlantic University, Peter Bamkole, Chief Executive Officer, Etisalat Nigeria, Matthew Willsher and Founder, Simon Page, Princewill Omoroguiwa at the Unveiling of Winners of Etisalat EasyBusiness Millionaires Hunt 2 in Lagos, Tuesday.