The Nigerian Exchange Regulations Limited on Thursday suspended trading in the shares of Sterling Bank Plc (NGX: STERLNBANK).
In a market bulletin – NGXREG/LRD/MB16/23/03/30, NGX Reg said “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.”
It added that the suspension is required for the purpose of determining the shareholders who will qualify for the scheme.
According to Sterling Bank, “In accordance with the Scheme of Arrangement dated 5th August 2022, the 28,790,418,124 ordinary shares of 50 Kobo each in the issued and paid-up share capital of the Bank held by the Scheme Shareholders be and are hereby transferred to Sterling Financial Holdings Company Limited (“HoldCo”) in exchange for the allotment of 28,790,418,124 ordinary shares of 50 Kobo each in the share capital of HoldCo to the shareholders in the same proportion to their shareholding in the Bank credited as fully paid without any further act or deed.
“The Bank will transfer all the assets, liabilities and undertakings related to the non-interest banking business to The Alternative Bank Limited;
“In accordance with the Scheme of Arrangement, all of the shares held by the Bank and its nominee in The Alternative Bank Limited, together with all rights and liabilities attached to such shares, shall be transferred to HoldCo. The Alternative Bank Limited will be a direct subsidiary of HoldCo.”
In its last trading, Sterling Bank closed flat at N1.6 per share. Year-to-date it is up 14.29%.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.