De­mu­tu­al­i­sa­tion: NSE ap­points two ad­vis­ers

Daily Trust - - BUSINESS - From Kay­ode Ogun­wale, La­gos

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.


Newspapers in English

Newspapers from Nigeria

© PressReader. All rights reserved.