Rights Issue suspension: Stanbic IBTC to engage regulatory authorities ….. VANGUARD

Stanbic IBTC Holdings Plc has pledged to engage the relevant regulatory agencies undertaking enquiries into its account to ensure that issues leading to the suspension of its planned rights issue by the Securities and Exchange Commission (SEC) are addressed in a timely manner.

The SEC had in public notice yesterday said that it has put the proposed rights issue by the bank on hold following receipt of letters from the National Office for Technology Acquisition and Promotion (NOTP), the Central Bank of Nigeria (CBN) as well as the Financial Reporting Council (FRC).

The commission noted that the suspension became necessary due to notification from the FRC of an ongoing investigation on the financial statements of Stanbic IBTC Holdings Plc.

The suspension took effect on September 7, 2015 and would remain effective pending conclusion of the ongoing investigation and proper resolution of all issues raised, the SEC said.

The bank, however, in a statement assured that it is “well capitalised and has adequate liquidity”.

The bank said “Stanbic IBTC Holdings PLC (“Stanbic IBTC”) notes the suspension by the Nigerian Securities and Exchange Commission of its proposed rights issue, pending the resolution of enquiries from certain relevant regulatory bodies.

“The management of Stanbic IBTC will continue to engage with the relevant regulatory bodies to ensure that these enquiries are addressed in a timeous manner. Stanbic IBTC Bank Plc, the banking subsidiary of Stanbic IBTC Holdings PLC, remains well capitalised and has sufficient liquidity.”

It will be recalled that Stanbic IBTC holdings had in June revealed its intension to raise N20.4 billion via a rights issue.

It said that it would issue 800 million ordinary shares of 50 kobo each at N25.50 each on the basis of two new shares for every 25 held.