The Nigerian Exchange Limited has re-admitted Sterling Bank Plc on its official trading list after the Tier 2 lender completed its ongoing transformation to a financial holdings company.
As part of the processes for the transformation, trading in the shares of the bank was suspended last week and the bank was delisted to enable the transfer of all shares owned by stakeholders of the new entity, and relisting of all the shares to the Sterling Financial Holdings Company on the floor of the Nigerian Exchange.
In a filing to the Exchange on Thursday, the HoldCo said the relisting signified another major development in the ongoing transition, as unanimously approved by its shareholders.
“Under the scheme of the arrangement, Sterling Bank’s issued and paid-up share capital, valued at 28.8 billion outstanding shares, will be passed to the holding company in exchange for the allotment of the same units to shareholders.
“This move as ratified by the Nigerian Exchange follows an approval-in-principle for
Sterling is to convert to a non-operating financial holding company as granted by the Central Bank of Nigeria, and is expected to enable Sterling to continue to diversify its investment portfolio and expand its presence in the financial markets.”
The statement added that upon the completion of the transition, Sterling Financial Holdings Company would commence operations with two banking subsidiaries; Sterling Bank, which will operate as a conventional commercial bank; and The Alternative Bank Limited, which will operate as a non-interest bank.
According to the bank, the relisting of its shares was a strategic move for continued building momentum as well as positioning the bank for long-term success.
The development coincides with the fifth anniversary of the appointment of Abubakar Suleiman as the bank’s CEO in 2018.
