Stanbic IBTC Bank Plc has concluded plans to reduce its share capital by N7.5 billion. As a result, the number of shares held by shareholders would change without affecting the rights and shareholding structure, said Mrs. Sola David-Borha, chief executive officer of the bank.
She told stockbrokers during a parley that the number of shares held by a shareholder would however change as four out of every five shares, totalling15 billion units of the current 18.75 billion units would be cancelled, thereby reducing the bank’s share capital by N7.5 billion. The shareholder would be paid 50 kobo for each share cancelled while the remaining share would be converted to a share in the holding company.
The proposed share cancellation, she continued, meant that excess capital would be returned to shareholders, following which the holding company would have 10 billion issued and fully paid up shares of 50 kobo each.
Shareholders of the bank would then become shareholders of Stanbic IBTC Holdings Plc with the same proportionate ownership, apart from fractional shares, which would be converted to cash.
Ahead of the court-ordered meeting in Abuja on August 9, 2012, the management of the bank is assuring its shareholders that the change of status to a holding company would not affect their shareholding.
In a parley with stockbrokers in Lagos, David-Borha explained that “the proposed restructuring will result in no adverse changes to the rights and ownership of existing shareholders of Stanbic IBTC.
“I wish to state categorically that the value of your investment will not be adversely affected by the change in legal structure. For example if a shareholder owns one per cent of the bank he will own one per cent of the new holding company”, she said.
The bank will thereafter become a wholly owned subsidiary of Stanbic IBTC Holdings Plc, and will apply to the CBN for a commercial banking license. It will subsequently be delisted from the Nigeria Stock Exchange’s daily official list, giving way to the listing of Stanbic IBTC Holding Plc on the exchange.
The chief executive said Stanbic IBTC Bank would transfer all of its shares in its five subsidiaries, namely: Stanbic IBTC Bank (including Stanbic Nominees Nigeria Limited), Stanbic IBTC Pension Managers Limited, Stanbic IBTC Asset Management Limited, Stanbic IBTC Stockbrokers Limited, Stanbic IBTC Trustees Limited, Stanbic IBTC Ventures Limited, Stanbic IBTC Capital Limited and Stanbic IBTC Investments Limited, to the holdings company.
Under the new structure, David-Borha said, shareholders will benefit from the entire business, just as the bank’s retail depositors will not be exposed to the risks associated with the non-banking activities of the remainder of the group.