By Chinwendu Obienyi
Shareholders of Sterling Bank Plc have unanimously voted in favour of its transition into a new non-operating holding company to hold the shares in its commercial banking operation.
The vote also included the shares of a newly incorporated subsidiary, The Alternative Bank Limited, which will operate as a Non-Interest Banking business.
A statement from the bank said at the end of a court-ordered meeting in Lagos, the shareholders gave the approval for the carve out and transfer of the bank’s non-interest banking business to The Alternative Bank Limited, under a proposed scheme of arrangement between Sterling Bank Plc and the holders of its fully paid-up ordinary shares of 50 kobo each.
It stated, “All the shareholders who attended the meeting approved the initiative and commended the foresight of the directors. They also advised the board and management to work hard to nurture new businesses in a bid to enhance the growth of the holding company.”
Addressing shareholders at the meeting, Chairman of Sterling Bank, Mr Asue Ighodalo, said under the new arrangement, the assets, liabilities, and undertakings of the non-interest banking business would be carved out of the bank and transferred to The Alternative Bank Limited.
Ighodalo said, “Following the implementation of the scheme, shareholders will exchange their shares in the Bank for shares in HoldCo in the same proportion as their current holdings in the Bank, which will be a regulated entity for CBN purposes.”