Investors lose N11 billion as Fortis MFB is liquidated

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Free float deficient companies

Investors in the now defunct Fortis Microfinance Bank may have lost over N11 billion, following its liquidation. Fortis last traded at N2.58 on the Nigerian Stock Exchange (NSE), on the 27th of July, 2018 and has a total of 4.5 billion shares in issue, thus resulting in a total market cap of N11.8 billion.

Losses could be more

The estimated losses could be much more for shareholders that got into the stock at a much higher price.

Bua group

The bank listed on the NSE in 2012 at a price of N5 per share. Investors that have held since then, may have lost over 48% in value.

Journey to the end

In a notice dated 6th of February, 2018 the bank stated that it had experienced a run on its operations, due to its suspension from trading by the Nigerian Stock Exchange (NSE). It also stated that some anomalies were discovered in the third quarter of 2017.

In March last year, an interim committee was named to oversee the affairs of the bank. It comprised four newly appointed staff, namely Bunmi Lawson as Managing Director, Oluwasola Ajewole as Executive Director Finance and Administration, Rebecca Tanko-Sheyin as Executive Director Banking Operations, and Chika Okey-Nwangwu as Executive Director Banking Operations.

Tiko Okoye and Adewale Aderounmo were retained from the previous management team.

In August 2018, barely five months after, Lawson put in her resignation. No reason was given for her action.

About the company

Fortis Microfinance Bank Plc was incorporated as a Private Limited Company on the 18th of June 2007 and commenced operations as a unit Microfinance Bank on October 4, 2007.
The company converted to a Public limited company in October 2011 and its shares were subsequently listed on the Nigerian Stock Exchange on the 20th of June, 2012. In August 2015, Fortis obtained a licence from the CBN to operate as a National Microfinance Bank.

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