NGX suspends trading in Sterling Bank’s shares

Nigerian Exchange Limited (NGX) says it has suspended trading in the shares of Sterling Bank Plc.

In its weekly report of market activities, the local bourse said the suspension took effect on Thursday.

NGX said the suspension was in preparation for a restructuring of the bank.

“Trading License Holders and the investing public are hereby notified that trading in the shares of Sterling Bank Plc (the Bank) was suspended on Thursday, 30 March 2023,” the report reads.

“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 for the purpose of determining the shareholders who will qualify for the scheme.”

It would be recalled that the bank last week had banned the company’s directors and other individuals with access to sensitive materials relating to the firm’s financials from trading its shares.

The financial institution took the decision following its inability to meet the deadline set by the capital market regulator, Securities and Exchange Commission (SEC), for the submission of the Audited Financial Statements (AFS) for the year ended December 31, 2022.

“The Audited Financial Statements (AFS) for the year ended 31st December 2022 is currently being finalized and to this end, the Bank wishes to communicate that it will be constrained to file its AFS before the close of the statutory deadline of 31st March 2023.

Sterling Bank is concluding arrangements for its transition from a commercial banking group to a holding company (HoldCo).

Once substantive authorisation is received, the bank gets a licence to veer into other businesses within financial services including pensions, insurance, asset management and fintech.