Sterling Bank shares suspended on NGX

The Nigerian Exchange Limited (NGX) has suspended trading in the shares of Sterling Bank. The suspension began on Thursday and will continue until the completion of a restructuring of the bank. According to a statement from the NGX’s weekly report, the suspension is necessary to identify shareholders who will qualify for the restructuring scheme.

Sterling Bank has requested an extension for the deadline to file its annual financial statements for the year ended December 31, 2022. In a notice to the NGX, the Company Secretary and Chief Legal Officer, Temitayo Adegoke, stated that the bank is working with its auditors to finalise the AFS by the revised deadline of April 30, 2023. The bank is committed to regulatory compliance and transparency and has placed a closed period that began on January 1, 2023, and will continue until 24 hours after the AFS for the year ended December 31, 2022, is released on the floor of the Exchange.

Sterling Bank is undergoing a scheme of arrangement with the holders of its fully paid ordinary shares of 50 Kobo each for a restructuring of the bank. The suspension of trading in the bank’s shares will prevent transactions and trading in preparation for the restructuring. The NGX has assured the public that it will keep the market informed of any updates regarding the matter.

The restructuring of Sterling Bank is a significant development in the Nigerian financial market. The bank’s request for an extension for the deadline to file its annual financial statements shows the complexity of the scheme of arrangement. With the suspension of trading in the bank’s shares, shareholders will have to wait until the completion of the restructuring to trade in their shares. The NGX’s decision to suspend trading in the shares of Sterling Bank is a proactive measure to ensure transparency and fairness in the process of identifying shareholders who will qualify for the restructuring scheme.