Mrs Sola David-Borha, the Chief Executive Officer of Stanbic IBTC, on Wednesday assured shareholders of enhanced return in the impending holding company structure, Stanbic IBTC Holdings Plc.
David-Borha said this in Lagos during the company’s facts behind the figures at the Nigerian Stock Exchange (NSE), adding that shareholders would benefit from business of the holding structure.
She said that shareholders’ stake in the proposed structure would remain unchanged when its impending holding company was finalised and retain the same exposure to the financial services which they currently had.
``The holding company will ensure that the commercial bank’s retail depositors are not exposed to the risks associated with the non-banking activities of the remainder of the group,” David-Borha said.
She said that the company’s structure was consistent with the group-wide approach of the Standard Bank Group, which would allow the various subsidiaries to call on the expertise of the parent model.
The chief executive officer also said that the proposed reorganisation would involve transfer of subsidiaries, share cancellation, reorganisation of capital, exchange of post-cancellation shares, delisting and listing.
She said that the share capital of the bank would be reduced by N7.5billion as a result of cancellation of 15 billion out of the current 18.75 billion ordinary shares.
David-Borha said that four out of every five ordinary shares held by all the bank shareholders would be cancelled with each shareholder receiving 50k for each cancelled share.
She explained that the bank adopted a holding company structure in order to retain all its existing lines of businesses.
David-Borha said that the holding company would have 10 billion issued and fully paid up shares of 50k.
Mr Oscar Onyema, the NSE Chief Executive Officer, said that the bank should leverage on its competitive advantage to maximise returns.
Onyema, however, urged the quoted companies to comply with post listing requirements by ensuring prompt submission of information for investment decision purpose.
He said that the exchange had placed corporate governance at the front burner to maximise shareholders’ return.