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Sterling Bank delists from NGX, transfers shares to Sterling Financial Holdings
Sterling Bank has delisted its shares from the Nigerian Exchange Limited (NGX), transferring the shares to Sterling Financial Holdings Company, which has now been listed on the stock market.
According to reports on Friday, Sterling Bank restructured into a Holding Company on Thursday and was delisted to become one of the subsidiaries of Sterling Financial Holdings Company.
Ripples Nigeria previously reported that the capital market authority suspended trading on Sterling Bank amid the restructuring process.
The restructuring saw Sterling Bank transfer 28.8 billion outstanding shares to Sterling Financial Holdings Company, with shareholders of the former moving to the latter.
This publication understands that the restructuring, which has been approved in principle by the Central Bank of Nigeria (CBN), will enable Sterling Financial Holdings to expand into non-core banking.
Read also:Sterling Bank bars directors from trading shares, risks regulatory sanction
Sterling Bank will serve as an interest-focus bank and the Alternative Bank Limited will operate as a non-interest bank – with both operating as subsidiaries of Sterling Financial Holdings.
The company will also branch into other sectors, following in the steps of its market rivals, Guaranty Trust Holding Company (GTCO), and Access Holdings, amongst others.
In a statement addressing the delisting and transfer of shares, Sterling Bank said: “Under the scheme of 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 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.”
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