NSE Suspends Trading on the Securities of AfriBank Plc, Bank PHB Plc, and Spring Bank Plc
Category: Money Market
August 8, 2011
Pursuant to the nationalization of AfriBank Plc, Bank PHB Plc, and Spring Bank Plc by the Nigerian Deposit Insurance Corporation (NDIC) on Friday, August 5th, 2011 and subsequent purchase of the banks by Asset Management Corporation of Nigeria (AMCON), The Nigerian Stock Exchange (NSE) has placed the shares of the affected banks on full suspension as a first step towards their delisting from the Daily Official List. This means that no trading will occur in the shares of these banks as these banks no longer exist following the revocation of their licenses by Central Bank of Nigeria.
Transactions in the shares of the three banks up to and including Friday, August 5th, 2011 will be allowed to settle.
The three new banks (Enterprise Bank Limited, Keystone Bank Limited and Mainstreet Bank Limited) that NDIC established to take over the assets and liabilities of AfriBank Plc, Bank PHB Plc, and Spring Bank Plc, are privately owned by AMCON and are not listed on The Exchange.
In addition, The Exchange has placed the shares of four rescued banks: Intercontinental Bank, Oceanic Bank, Union Bank and FinBank that have signed Transaction Implementation Agreements on technical suspension, until the completion of their recapitalization transactions not later than September 30th, 2011. It would be recalled that The CBN had announced that the rescued banks had until the end of September to conclude their recapitalization.
The Exchange wishes to assure the investing public that it would continue its investor protection efforts.
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