The Nigerian Exchange (NGX) Limited has suspended trading activities on the shares of Sterling bank, OduNews reports.
The suspension is premised on the bank’s move to finalise its transition from a standalone commercial bank to financial services holding group.
The regulatory reports at the NGX indicated that the full suspension of trading has been placed on the bank, which implies that there will be no price change and trading on the bank’s stock.
According to the Exchange, the suspension was 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 the restructuring of the bank.
“The suspension is required for the purpose of determining the shareholders who will qualify for the scheme,” the NGX stated.
Under the proposed holding company (Holdco) structure, Sterling Bank will transit from its operating structure to a holding company structure, which will group the commercial bank and its other subsidiaries under a parent company.
Under the banking regulatory regime introduced by the Central Bank of Nigeria (CBN) in 2010, banks were required to concentrate fully on core banking functions. The model required banks to either sell non-core banking businesses or form a holding company to hold such non-core banking businesses including activities such as insurance, asset management and capital market operations. Most banks opted to sell or divest from non-core commercial banking businesses.
But several banks are adopting holdco status to take advantage of opportunities in the non-commercial banking space.
Meanwhile, Sterling Bank has requested the NGX to grant it a short extension of the deadline for filing its annual financial statements for the year ended December 31, 2022.
Sterling Bank’s Company Secretary and Chief Legal Officer, Ms. Temitayo Adegoke, assured stakeholders and the public that the bank was working with its auditors, Deloitte, to finalise the AFS by the revised deadline of April 30.
