The Nigerian Exchange (NGX) has suspended trading in the shares of Sterling Bank Plc.
In its weekly report of market activities, the NGX said the suspension took effect on Thursday.
With this development, the shares of the Tier 2 bank, would not be traded on NGX and the share price will remain unchanged until the technical suspension is lifted.
The NGX in its weekly report, explained that the suspension was necessary to determine the shareholders’ stakeholding in the Bank’s restructuring. The Bank had last year, sought and obtained regulatory approval to restructure into a Holding Company, and possibly change its name.
The NGX 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. The suspension is required to determine the shareholders who will qualify for the scheme.”
The lender will become known as Sterling Financial Holdings Company when the transition is delivered, according to a recent regulatory filing on the NGX website.
A Holding Company is a company structure specifically designed by law to engage in the business of holding/acquiring controlling/majority stock interests in various companies/subsidiaries and subsequently maintaining an oversight function over these subsidiary companies.