Sterling Bank to change name

Shareholders have approved the conversion of Sterling Bank Plc from core banking business to a holding company. The move, experts said, will allow the financial institution to strengthen its subsidiaries, especially its Islamic banking operation which it started months ago.

According to a filing made by the bank on the Nigerian Exchange Limited’s website, it will become known as Sterling Financial Holdings Company when the transition is completed. 

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The announcement made yesterday by its board comes a week after the bank convened a meeting of shareholders at the order of a court. The conversion to a holdings company will offer the bank the opportunity to gain controlling stake in companies where it currently holds substantial interest as well as engage in other sectors within the financial services such as fintech, asset management and pension among others. 

It also noted that in accordance with the Scheme of Arrangement, the 28,790,418,124 ordinary shares of 50 Kobo each in the issued and paid-up share capital of the Bank held will be transferred to the holding company in exchange for the allotment of those same units to shareholders on completion.

“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,” it said.