How Stanbic IBTC, FBN HoldCo Listing Affect Investors

12 Dec 2012

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By Eromosele Abiodun

In line with the requirements of the Central Bank of Nigeria (CBN) that any commercial banking group that wishes to keep its non-banking subsidiaries should adopt holding company structure, the shares of First Bank of Nigeria Plc and Stanbic IBTC Bank Plc have been delisted from the Daily Official List (DOL) of the Nigerian Stock Exchange (NSE), while their respective holding companies – FBN Holdings Plc and Stanbic IBTC Holdings Plc have been listed.

The listing means the two banks now have new share structure with many of their shareholders not knowing what impact the listing had on their holdings.

A breakdown of the transactions as they affect the shareholders of the former banking groups revealed different ramifications for their shareholders.

For instance, Stanbic IBTC Holding Plc provides for the cancellation of four out of every five shares held by the bank’s shareholders, with each bank shareholder receiving 50 kobo for each cancelled share, being at par value of such holdings.

THISDAY findings showed that each of the bank’s shareholders were left with one ordinary share in the bank for every five (1:5) previously owned. Accordingly, the share capital of the bank was reduced by a total of N7,500,000,000. The shares of Stanbic IBTC Holdings Plc were listed at N13.03 per share.

Stanbic IBTC Holding in a statement said a payment of 50 kobo will be given on the cancelled units.
However, the FBN Holding Company structure does not change the rights and ownership of existing shareholders of First Bank of Nigeria Plc.

THISDAY checks showed that existing shareholder’s shareholding has been migrated to FBN Holdings Plc in exchange for receiving ordinary shares in FBN Holdings equal to the number of shares they held in First Bank immediately before the effectiveness of the restructuring. This means that one share of FBN HoldCo for one share of FBN previously owned.

All the fully paid shares of First Bank were transferred to the newly listed FBN Holdings Plc, leading to the listing of 32.63billion ordinary shares on behalf of FBN Holdings Plc on the floors of the NSE. FBN Holdings shares were listed at a price of N15.05 per share.

The restructuring means that former shareholders of First Bank retained the same number of shares in the new FBN Holdings Plc. FBN Holdings Plc has four direct subsidiaries with nine indirect subsidiaries.  

Tags: Business, Featured, Nigeria, IBTC, FBN, Investors

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