April 03, (THEWILL) – The Nigerian Exchange Limited (NGX) has announced the suspension of shares in Sterling Bank Plc effective last Thursday
The move is to prepare for the commencement of a holding company (holdco) structure which the company is proceeding to.
With this action, the shares won’t be traded on NGX and the share price will remain unchanged until the technical suspension is lifted.
A notice issued by the NGX in its weekly report of activities explained that the suspension was necessary to determine the shareholders’ stake in the Bank’s restructuring. The Tier 2 bank had, last year, obtained regulatory approval to restructure into a Holding Company, and possibly change its name.
“The suspension is necessary to prevent trading in the shares of the bank in preparation for the scheme of arrangement between the bank and the holders of its fully paid ordinary shares of 50 Kobo each for restructuring of the bank. The suspension is required to determine the shareholders who will qualify for the scheme,” the report stated.
The lender will become known as Sterling Financial Holdings Company when the transition is delivered, according to a recent regulatory filing on the NGX website.
A Holding Company is a company structure specifically designed by law to engage in the business of holding/acquiring controlling/majority stock interests in various companies/subsidiaries and subsequently maintaining an oversight function over these subsidiary companies.
The lender is expected to transfer all its assets, liabilities, and undertakings related to the non-interest banking business to “The Alternative Bank Limited,” the statement said about its newest subsidiary that received approval in principle in December.
Sterling Bank’s issued and paid-up share capital valued at 28.8 billion outstanding shares will passé to the holding company in exchange for the allotment of those same units to shareholders on completion.
The lender had on March 29, requested an extension in the deadline for the filing of its annual financial statements for the year ended 31st December 2022 till April 30, 2023.
The Company Secretary and Chief Legal Officer, Temitayo Adegoke, in a notice to the NGX said that it was working with its auditors to finalise the AFS by the revised deadline of 30th April 2023.
She emphasised that the bank’s commitment to regulatory compliance and transparency remained its top priority.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
