Shareholders of Sterling Bank have approved its conversion from a core banking business to a holding company.
The shareholders also approved the bank’s proposed change of name to reflect its new businesses and core values.
NewsClick Nigeria reports that the bank will now operate as a holding company with the name Sterling Financial Holding Company.
It should be recalled that at a meeting held last week, shareholders agreed to transfer their investment into Sterling Financial Holding Company which will enable the new company to venture into other sectors within financial services.
According to a statement released by the bank, shareholders believed that the decision to transform the lender bank into a holding company will enhance operations and pave the way to make the company a dominant force in the financial market.
Under the new arrangement, shareholders will exchange their shares in the Bank for shares in HoldCo in the same proportion as their current holdings in the Bank.
In addition, the new company, Sterling Financial Holding Company will be registered as a public company and Sterling Bank Plc will be delisted from the Daily Official List of the Nigerian Exchange Limited (NGX) while the new company (Sterling Financial Holding Company) will be listed in its stead. Sterling Bank will subsequently be a subsidiary which will be re-registered as a private limited liability company.
Founded in 1960 and headquartered in Lagos, Sterling Bank operates within four areas of banking which include Retail and Consumer Banking, Commercial Banking, Institutional Banking and Corporate Banking.
Chairman of Sterling Bank, Mr Asue Ighodalo explained that the transition into a holding company will enhance diversification into other permissible business lines, thereby promoting growth and enriching shareholder value while it will also consolidate the financial strength of the group.
Sterling bank will be joining a group of commercial banks such as United Bank of Africa (UBA), Access Bank, First Bank, Guarantee Trust Bank (GTB) and others which have changed names to holding companies.
