What Happened to Skye Bank Shares?
The CBN revoked Skye Bank's licence on 21 September 2018 and moved its business to Polaris Bank. Skye Bank shares were delisted in August 2019. Here is what that means for an old holding.
Skye Bank Plc's licence was revoked by the Central Bank of Nigeria (CBN) on 21 September 2018. On the same day the CBN licensed a new bank, Polaris Bank Limited, to take over all of Skye Bank's assets and liabilities, and the Asset Management Corporation of Nigeria (AMCON) capitalised it. Skye Bank shareholders did not receive shares in Polaris. Trading in Skye Bank shares was suspended from 24 September 2018 and the shares were delisted from the Nigerian Stock Exchange on 21 August 2019.
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How Skye Bank Came to an End
The CBN had intervened in Skye Bank on 4 July 2016. When it revoked the licence, the CBN said the bank's shareholders had been unable to recapitalise it. To protect depositors and avoid a run, the CBN and the Nigeria Deposit Insurance Corporation set up Polaris Bank as a bridge bank, with AMCON injecting ₦786 billion to bring its net value to zero and a mandate to stabilise it and later sell it to investors.
Skye Bank itself had earlier acquired Mainstreet Bank, the bridge bank created in 2011 to take over the business of Afribank. That business therefore passed through two failed banks and two bridge banks.
What It Meant for Shareholders
- No exchange: Polaris Bank was a new company owned by AMCON, not a successor that issued shares to Skye Bank's shareholders.
- Suspension: the exchange suspended trading in Skye Bank shares from Monday 24 September 2018.
- Delisting: Skye Bank shares were removed from the official list on 21 August 2019 because the licence had been revoked.
- Certificates: press coverage of the delisting reported that Skye Bank share certificates were no longer valid for any transaction.
This is the same route that was taken with Afribank, Bank PHB and Spring Bank in 2011, and different from the rescues in which shareholders received shares in an acquiring bank.
What an Old Skye Bank Certificate Means Today
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A Skye Bank certificate, or a Skye Bank line on an old CSCS statement, records an investment in a company whose licence was revoked and whose shares no longer trade anywhere. It is not a claim on Polaris Bank. There is no market price and no broker can take an order in the shares.
Anyone who believes a Skye Bank dividend declared before 2018 was never paid should raise it with the registrar named on the dividend warrants of the time. We have not found a published arrangement for such claims, so we cannot say what the answer will be.
If Skye Bank shares came from an earlier bank named on your paperwork, check the history. Skye Bank was formed in 2006 from EIB International Bank, Bond Bank, Reliance Bank, Cooperative Bank and Prudent Bank, so an older certificate may name one of those banks instead.
What to Do Next
- Keep the Skye Bank certificate or statement with the rest of the holder's papers as a record.
- List every other company named in those papers. Holdings from the same period in other companies may still be registered and paying dividends.
- Find the current registrar for each of those companies and ask what is registered in the holder's name, or run one search across the registrars.
- If the holder has died, the executor or administrator will need a grant of probate or letters of administration before registrars will release anything.
A Find My Shares search checks across the registrars for holdings in your name for ₦10,000. It cannot restore Skye Bank shares, but it shows what else is still registered to you, and found shares can be moved into your Shares Saver account free.
Start a Find My Shares searchFrequently Asked Questions
Did Skye Bank shareholders get Polaris Bank shares?
No. Polaris Bank was created and capitalised by AMCON and was not listed. Skye Bank's shareholders were not given shares in it.
Can I sell my Skye Bank shares?
No. The shares were delisted on 21 August 2019 and there is no market in them.
My Skye Bank shares still show on an old CSCS statement. Does that mean they have value?
A statement from before the delisting will still list them. It does not change the position: the company lost its licence and its shares are no longer quoted.
Important 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.
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