What Happened to Afribank, Bank PHB and Spring Bank Shares?
On 5 August 2011 the CBN revoked the licences of Afribank, Bank PHB and Spring Bank and moved their business to three new banks owned by the state. Here is what that meant for shareholders.
On 5 August 2011 the Central Bank of Nigeria (CBN) revoked the licences of Afribank Nigeria Plc, Bank PHB Plc and Spring Bank Plc and transferred their assets and liabilities to three newly created bridge banks: Mainstreet Bank Limited, Keystone Bank Limited and Enterprise Bank Limited. The bridge banks were set up by the Nigeria Deposit Insurance Corporation (NDIC) and capitalised by the Asset Management Corporation of Nigeria (AMCON). The old banks' shareholders were not given shares in the new banks, and trading in the old shares was suspended ahead of their removal from the exchange.
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Why the Three Banks Were Closed
All three had been taken over by the CBN in 2009. Afribank's chief executive was removed in August 2009, and those of Bank PHB and Spring Bank on 3 October 2009. The CBN had set 30 September 2011 as the deadline for the rescued banks to recapitalise. Five of the eight rescued banks reached agreements with acquirers or investors; for Afribank, Bank PHB and Spring Bank the CBN concluded they had not shown the capacity to recapitalise in time, and revoked their licences instead.
Where Each Bank's Business Went
- Afribank Nigeria Plc: business transferred to Mainstreet Bank Limited. AMCON sold Mainstreet to Skye Bank Plc, which completed the purchase in 2014.
- Bank PHB Plc: business transferred to Keystone Bank Limited. AMCON sold Keystone to a consortium of Sigma Golf and Riverbank Investment in March 2017.
- Spring Bank Plc: business transferred to Enterprise Bank Limited. AMCON sold Enterprise to Heritage Banking Company in October 2014.
Each of those sales was made by AMCON as the owner of the bridge bank. They were not share exchanges and did not involve the original shareholders of Afribank, Bank PHB or Spring Bank.
What It Meant for Shareholders
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Customers' deposits moved to the bridge banks, but ownership did not. The bridge banks were new companies owned by the state and were never listed. The Nigerian Stock Exchange suspended trading in the three banks' shares and began the process of delisting them, and press coverage at the time reported that the shareholders' investment had been lost. The CBN's governor said in 2012 that the capitalisation of the three new banks by AMCON had resolved the combined negative asset value of the eight rescued banks.
These three are different from the other rescued banks. Holders of Oceanic, Intercontinental and FinBank shares received shares in the acquiring bank. Holders of Afribank, Bank PHB and Spring Bank shares did not receive shares in Mainstreet, Keystone or Enterprise.
What an Old Certificate Means Today
A certificate in Afribank, Bank PHB or Spring Bank is a record of a past investment in a company whose licence was revoked and whose shares no longer trade. It is not a claim on Mainstreet, Keystone, Enterprise or the banks that later bought them. It can still be useful as evidence of the holder's name, address and registrar at the time, which helps when tracing other shares the same person held.
Families often find these certificates among other papers from the same period. Other shares from that era, in banks that were merged rather than closed and in companies outside banking, may still be on a register and paying dividends.
What to Do Next
- Separate the papers by company. Put certificates for banks that were closed to one side and list every other company named.
- For each other company, find its current name and registrar; mergers and renamings mean the name on the paper is often not the name today.
- Contact those registrars, or run a single search across them, to see what is still registered in the holder's name.
- If the holder has died, the executor or administrator will need a grant of probate or letters of administration before any registrar will release shares or dividends.
A Find My Shares search checks across the registrars for holdings in your name for ₦10,000. It will not revive a closed bank's shares, but it can show what else from the same years is still registered to you.
Start a Find My Shares searchImportant disclaimer. This article is for general information and educational purposes only. It does not constitute financial advice, investment advice, or any recommendation to buy, sell, or hold any security. The value of investments can fall as well as rise. You should seek independent regulated financial advice before making any investment decision. Shares Saver does not provide financial advice.
Frequently Asked Questions
How can I see my unclaimed Afribank, Bank PHB or Spring Bank shares?
These old shares no longer trade and did not become shares in Mainstreet, Keystone or Enterprise Bank. Keep the certificates as evidence of the holder’s name, address and registrar at the time, and list the other companies in the same papers. Guide to unclaimed shares.
Who is the registrar now?
This post does not name a current registrar for the closed banks. An old certificate can identify the registrar at the time, but it is not a claim on the bridge bank or a later buyer. For other companies in the papers, find their current names and registrars. Guide to unclaimed shares.
What did Afribank, Bank PHB and Spring Bank shareholders get?
No shares in Mainstreet, Keystone or Enterprise. The businesses and deposits moved, but the old shareholders did not become owners of the new banks. AMCON’s later sales of the bridge banks were not share exchanges for the original holders. Guide to unclaimed shares.
Can my old certificate help me find other shares?
Yes. It records the registered name and address, which can help trace other companies held in the same name. For a deceased holder, registrars require the executor or administrator’s grant of probate or letters of administration before releasing shares or dividends. Guide to unclaimed shares.
Can Shares Saver find them for me?
Find My Shares costs ₦10,000 and checks across registrars for holdings in your name. It will not revive these closed banks’ shares, but can identify other holdings from the same years. Find My Shares.
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