Sterling Financial Holding Company Directors Acquire Substantial Stake Amidst Recapitalization Efforts
Three key directors of Sterling Financial Holding Company Plc have recently acquired a significant number of shares in the company, totaling 46.24 million units at a combined value of N341.63 million. This move comes as Sterling HoldCo prepares for a public offering aimed at bolstering its capital base to meet new regulatory requirements set by the Central Bank of Nigeria (CBN). The share acquisitions, disclosed through mandatory insider dealing notifications filed with the Nigerian Exchange Limited (NGX), signal confidence in the company’s future prospects and align with the ongoing recapitalization drive.
Yemi Odubiyi, the Group Managing Director/Chief Executive Officer of Sterling HoldCo, indirectly participated in the acquisition through Seven Degrees North Limited, a company linked to him. Seven Degrees North acquired 20,816,570 units at N6.80 per unit, amounting to N141.55 million. This transaction occurred on August 1st on the NGX platform. On the same day, Temitayo Adegoke, the Chief Operating Officer of Sterling Bank Ltd (a subsidiary of Sterling HoldCo), purchased 5,742,260 units at N6.87 each, totaling N39.45 million.
Abubakar Suleiman, the CEO of Sterling Bank, acquired the largest individual stake, purchasing 19,684,442 units at N8.16 per unit for a total value of N160.63 million. His transaction was executed on August 6th. These acquisitions by top executives demonstrate a strong belief in the long-term value and growth potential of Sterling HoldCo, particularly in light of its strategic recapitalization plan.
The recent share acquisitions follow Sterling HoldCo’s announcement of an upcoming public offer to bridge a N53 billion recapitalization gap for Sterling Bank. This public offering constitutes the initial phase of a larger US$400 million capital raising program approved by Sterling HoldCo shareholders at their Annual General Meeting held on June 30, 2025. This comprehensive strategy emphasizes the group’s commitment to fortifying Sterling Bank’s capital base and enabling sustained growth across its diverse income streams.
Prior to the planned public offer, Sterling HoldCo had already raised approximately N100 billion through private placements and rights issues. These earlier capital raising efforts facilitated the full recapitalization of Alternative Bank, its ethical banking subsidiary, and strengthened Sterling Bank’s financial position. The group’s proactive approach to capital management reflects its commitment to meeting regulatory requirements and positioning itself for future expansion.
The CBN, under the leadership of Governor Olayemi Cardoso, has implemented revised minimum capital requirements for banks operating in Nigeria. Cardoso recently revealed that eight banks have already met these new thresholds, while others are actively working towards compliance. The CBN’s directive, issued in March 2024, stipulates a minimum capital base of N500 billion for banks with international authorization, N200 billion for national banks, and N50 billion for those with regional authorization. Non-interest banks are also subject to revised capital requirements, with N20 billion for national authorization and N10 billion for regional authorization. The deadline for compliance with these new capital requirements is March 2026. Sterling HoldCo’s proactive capital raising strategy, coupled with the recent share acquisitions by its directors, signifies a clear commitment to meeting these regulatory obligations and maintaining a robust financial foundation for future growth.
