Union Homes Savings & Loans, Fortis Microfinance Bank, 16 others on NSE suspension list

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Story by Kayode Tokede

A total of 18 companies on the Nigerian Stock Exchange (NSE) are currently suspended over failure to comply with posting listing requirement of timely filing of results.

These companies’ shares are suspended on NSE daily trading, leaving shareholders who invested in them trapped.

Findings by our correspondent revealed that, Union Homes Savings & Loans Plc, Fortis Microfinance Bank Plc, Aso Savings & Loans Plc, Goldlink Insurance Plc, STACO Insurance Plc, International Energy Insurance Plc and Skye Bank Plc are financial services suspended on the NSE.

Specifically, Skye Bank share since September 24, 2018 has been suspended following the regulatory action of the Central Bank of Nigeria to revoke license of the Bank.

The lender’s assets and liabilities managed by Polaris Bank shares’ remained flat at N0.77 per share as the Asset Management Corporation of Nigeria (AMCON) announced recently plans to hand over the bank to new investors.

Polaris Bank was set up last year to take over the assets of Skye Bank Plc, which collapsed and had its operating licence revoked by the Central Bank of Nigeria.

Another financial company, Fortis Microfinance Bank

The like of Thomas Wyatt Nigeria Plc, Deap Capital Management & Trust Plc, Golden Guinea Breweries Plc and Multi-Trex Integrated Foods Plc had their shares suspended on November 1, 2018 over management failure to file the relevant accounts by the expiration of the cure period.

Failure to remit December and September results to NSE, Unic Diversified Holdings Plc and DN Tyre & Rubber Plc share remained suspended.

Others are Afromedia Plc, Nigerian German Chemical Plc, Roads Nigeria Plc, Evans Medical Plc, and Omatek Ventures Plc.

Shareholders who spoke with our correspondent said companies operating on the NSE are facing numerous challenges, maintaining that regulating bodies must always protect shareholders who invested in some of these shares.

While speaking on Skye Bank suspension, The president, Independent Shareholders Association of Nigeria (ISAN), Mr.  Adeniyi Adebisi, said shareholders are surcharged when takeover/suspension are enforced on listed companies.

He said shareholders are always at the receiving end, stressing that such discourages local investors in the capital market.

He noted that “regulated companies have no chance to argue with the regulators- that is making the case bad. Even if they have a valid point, they find it difficult to present or have it mentioned to their regulating bodies.”

Also commenting, the former General Secretary of Independent Shareholders Association of Nigeria (ISAN) Mr. Adebayo Adeleke, said, “As usual, when a thing like this happens, it is only shareholders that carry the bucket.

“If you look at the trend of things, the board and management were preserved by CBN. The jobs of the staff were guaranteed, and the depositors are assured of the safety of their deposits.

“The issue is that the only losers right now are the shareholders who invested in the bank.

“So, N10.7 billion shareholders fund has gone down the drain, fizzed off. Suddenly now, a non-existing entity like Polaris Bank now owned the bank. But the problem is that the one, who is saddled with the responsibility of taking care of depositor’s fund, is CBN and they are doing their job.

“Unless somebody is deaf and dumb, suspended or no suspended, CBN said we have withdrawn the license of Skye Bank. Who is going to buy or sell the shares on Monday? You can only sell when someone wants to buy. So, the NSE placing technical of suspension is of no material effect or benefit.

“Very soon, they will just delist it because nobody is going to buy or sell shares pertaining to Skye Bank has it comes to nothing. The same way we had issues with Intercontinental Bank.”

“NSE must find out from CBN of the proposed takeover and the pending discussion.

“Investors must be carried along by NSE so that innocent investors will not have their fingers burnt by buying Diamond Bank shares.  Diamond Bank was on huge offer on Monday below its market price.”

According to Mr. Akinjide Dada, the suspension of some of these companies is affecting retail investors’ confidence in the capital market, especially, the case of Skye Bank, among other lucrative shares on NSE.

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