The Nigerian Stock Exchange (NSE) has placed the shares of Skye Bank Plc on suspension. The bourse made this known, in a press release posted on its website.
The move according to the statement, was taken following the Central Bank of Nigeria revoking the banking license of Skye Bank and in exercise of the powers of The Exchange pursuant to the Rules on Suspension of Trading in Listed Securities, Rulebook of The Exchange (Issuers’ Rules).
The Central Bank of Nigeria (CBN) in a statement issued yesterday, disclosed that the decision was taken was following the inability of shareholders to recapitalize the bank, which was needed urgently. In addition, the apex bank could no longer afford to provide liquidity support indefinitely.
The Asset Management Company of Nigeria (AMCON) is to inject N786Â billion into Polaris Bank Limited ( which has inherited the assets and liabilities of Skye Bank), and subsequently, find a new buyer.
Group Managing Director (GMD) of the Bank Adetokunbo Abiru has since written to both staff and customers of the bank on the changes.
All depositors of the defunct Skye bank are now depositors of Polaris Bank which has been fully capitalized and has the support of the CBN and NDIC.
Abiru also informed staff that they would transition to Polaris Bank Limited. The human capital management team, would communicate the transition process.
Skye Bank gained 4.15% in yesterday’s trading session to close at N0.77. 2.9 million shares valued at N2.1 million were traded in 47 deals.
I am surprised that NSE did not place Skye bank under suspension as the bank last submitted its audited accounts in 2016 for the year ended December 2015. On the day the licence was withdrawn, the stock gained about 4% and one wonders the basis for the gain as priced by stockbrokers.
Small insurance companies that delayed in submitting their accounts were suspended by NSE, so why didn’t NSE suspend Skye Bank?
Has the CBN a hand in this or was it a ploy to help Skye Bank attract new investors? The NSE will now be the joke of the year among stock markets. A stock that brokers had been pricing upwards collapses a few hours after a 4% appreciation in its price.
I think this should be a record!