With the recent takeover of Skye Bank Plc by Polaris Bank, following the inability of the owners of the bank to shore up the capital of the distressed bank, shareholders are now at the risk of losing an estimated N10.69 billion, being the value of the shareholders’ fund.

The shareholders, who spoke in an interview with The Guardian, amid lamentations, noted that while retail investors were still grappling with N83 billion loss of investment occasioned by the sale of the three nationalised banks- Keystone Bank Limited; Mainstreet Bank; and Enterprise Bank, they are currently faced with another dilemma arising from the sale of the Skye Bank.

According to them, one of the reasons why retail investors had shown apathy to the Nigerian stock market since the meltdown in 2009, was because of the issue of nationalised banks.

They bemoaned the failure of the Securities and Exchange Commission (SEC) to protect the interest of investors, noting that this is a disincentive to market growth.

The shareholders also blamed the former directors of the banks on the current predicaments, insisting that they fail to carry them along even when it became obvious that the bank needed to be recapitalised.

For instance, the Former Secretary General of the Independent Shareholders Association of Nigeria, Adebayo Adeleke, lamented that since Skye Bank is no more in existence, it means the N10.69 billion shareholders’ fund has also gone.

He pointed out that capital market regulators may find it difficult to attract more investment with the loss of such huge amount of money.

“The regulators have specific responsibilities giving to them by the act that establishes them, CBN protects the interest of the depositors, NDIC insures the securities of the deposit, AMCON is the midwife, to get the get the banking industry out of this toxic asset.

“We have SEC, whose statutory duty is to protect the interest of the investors.


While all these regulators have played their part, you will find out that it is only SEC that did not do anything at all.

“Unfortunately, Skye Bank had its own problem, but the management put in place by CBN in the past two years, with no annual report, no yearly general meeting, should explain at what point they really asked shareholders to recapitalise the bank and the shareholders said no,” he queried.

The President, Proactive Shareholders Association, Taiwo Oderinde, said: “The issue of Skye Bank’s takeover is not acceptable by our group at all.

It is a daylight robbery and a rape on our capital market and investment. The management and Board of Directors have been managing the bank for two years and they cannot come and be talking of takeover of our bank. God willing, we will challenge it in court.”

The Founder of Noble Shareholders Association, Gbadebo Olatokunbo, said: “These are the things that are discouraging local investors.

CBN should hold the directors of the bank responsible and should not allow shareholders to suffer the way they did when the three banks were nationalised.

“It is a big disappointment and I am just going through my holdings to know how much I have there. The directors of the bank must be made to pay for this.”

https://www.akelicious.net/2018/10/shareholders-may-lose-over-n10-billion.html

Ok

The new bank did not buy zero or negative, they should be given the % of the value of the old bank in the new setup. Nigerians just love to steal and use other people's money to grow rich. It's simple finance not rocket science.

This shouldn’t happen, those responsible for mismanaging the funds should be held accountable. I’m sure most of these shareholders have not been paid dividends for a while and now they are about loosing their investments.

CBN should look into this

Hmm.

Shareholders of the defunct Skye Bank will not have any dividend should Polaris Bank declare profit, so I was informed by their customer care.


Just between the time CBN announced the takeover on Friday evening to Monday of the other week, they have changed their names on twitter handle, documents etc.


But come to think of it, Skye Bank is one of the banks that Sterling Bank took a swipe on twitter recently and calamity has befallen it.

I prefer to use my money play nairabet than buy shares.

Skye bank


I am a web designer kindly check my signature

First thing tomorrow.. am going to skye bank to withdraw my money from the. Bank my money is not safe.

Don’t try that nonsense ooo

enitey:
CBN should look into this

CBN can't do anything. The shareholders can't reap where they didn't 'sow'. The new bank is a new entity. Happy new month.

Tunde Ayeni should be drilled to cough out all the funds he wasted on GEJ re-election bid that eventually put Skye Bank in a dire state it never recovered from

ok

Customers of Skye bank can now open account with first bank using *894*0#




Please read my signature, thanks ..

Any bank outside Firstbank and Stanbic bank, my hand no dey dia.

Mahn, this is no good news oh. I thought the new management were supposed to buy both Assets and Liabilities of what they are taking over?? Oh well, it's not a merger.

It's better we have a few strong banks than several unhealthy banks.

I thought AMCON was established to protect investors' deposits, thus kicking the era of investors losing money into obsolescence.

If Skye investors will lose their investments, then what's the difference between Nigerian banks from the now-defunct MMM?

Which means if First Bank or GTBank collapses, investors will also lose their deposits.

edunwablog:

The Founder of Noble Shareholders Association, Gbadebo Olatokunbo, said: “These are the things that are discouraging local investors.
CBN should hold the directors of the bank responsible and should not allow shareholders to suffer the way they did when the three banks were nationalised.

Blah! Blah! Blah! Share holding is not a ponzi scheme.

But Ogas,

When a bank falls like this, shareholders fund is usually the first to go. You should know that when investing. You saw that the bank was not holding annual shareholders meetings for a while, you had the opportunity to sell and leave, but you decided to stay. It was a risk you took. Don't conman block our ear biko.

SoNature:
It's better we have a few strong banks than several unhealthy banks.

I thought AMCON was established to protect investors' deposits, thus kicking the era of investors losing money into obsolescence.

If Skye investors will lose their investments, then what's the difference between Skye Bank from the now-defunct MMM?

Eh... Investors are not the main focus of AMCON or CBN or NDIC.

Depositors are. Depositors are considered to be doing their businesses in good faith and shouldn't suffer any loss.

If after every every, there is extra money, then investors comes next.

adewumiopeyemi:
First thing tomorrow.. am going to skye bank to withdraw my money from the. Bank my money is not safe.

They're talking about investors' money - shares, not account holders' savings.

Yankee101:
The new bank did not buy zero or negative, they should be given the % of the value of the old bank in the new setup. Nigerians just love to steal and use other people's money to grow rich. It's simple finance not rocket science.

Exactly. When you buy a business, you buy its assets and liabilities.

Yankee101:
The new bank did not buy zero or negative, they should be given the % of the value of the old bank in the new setup. Nigerians just love to steal and use other people's money to grow rich. It's simple finance not rocket science.

That was the "Finance" you were taught at your Iyana Ipaja International University, Olodo?

Why should they be given the same % value of the old bank they had before in the new bank? Because government money is free for private investors, Professor of Finance (Iyana Ipaja International University)?

Go shut-up and siddon somewhere, this is rocket science to people like you.

Here is the lecture for you that Iyana Ipaja International University did not teach you during your "world class" degree in Finance:

When you are or decide to be an investor in a company, whether publicly-listed or private, it is then your responsibility to ensure that the company is well ran according to the laws of the country and profitably, otherwise your money is at risk.

You do this by:

1) Either having a representative on the board, who are people there to monitor the CEO and Senior Managers as representatives of the shareholder; you have this if you are a significant shareholder

2) Or you monitor the company privately by reading annual reports (if you are a small shareholder) and pull your money out if you feel the CEO and Senior Managers are reckless or not providing the financial/ethical benefits you desire

In most publicly listed companies, the government would not give a flyingshit if a company is reckless and fails, but as banks are heavily linked to the economy as they hold people's money and fund the economy, they cannot afford to standby and watch recklessness. So they take over.

When they take over, they are putting in taxpayer's funds to buy a struggling bank, which is now automatically devalued. So a good portion of your money as an original investor is gone because of the fallen value of a struggling bank you did not monitor and the money the government is putting in to save your investment. If the bank is getting seriously heavy losses, then you might even get zero!

Professor of Finance at Iyana Ipaja International University, it is your fcking responsibility as a shareholder to monitor your investment so you don't lose it, not for the government to save it for you and pay you for any losses.

For you na rocket science o!

ifymadu:
This shouldn’t happen, those responsible for mismanaging the funds should be held accountable. I’m sure most of these shareholders have not been paid dividends for a while and now they are about loosing their investments.

See above!

ntyce:
This was the real intention of CBN, to take the bank from the shareholders...
CBN said the new mgt performed well yet you sold to Amcon?

There are buyers on ground, nothing was wrong with Skye

Another Professor of Retardation!

If there were buyers on the ground, then why were they depending on CBN to borrow money, foooool?

TOPCRUISE:

Share holding is not a ponzi scheme

Don't mind the cretin!

Cocao:
But Ogas,

When a bank falls like this, shareholders fund is usually the first to go. You should know that when investing. You saw that the bank was not holding annual shareholders meetings for a while, you had the opportunity to sell and leave, but you decided to stay. It was a risk you took. Don't conman block our ear biko.

Cocao:


Eh... Investors are not the main focus of AMCON or CBN or NDIC.

Depositors are. Depositors are considered to be doing their businesses in good faith and shouldn't suffer any loss.

If after every every, there is extra money, then investors comes next.

Your head correct, girl.

E be like say you go better school where dem teach you better Finance than those that thought it was not rocket science when it is Space science to them!

Do you that When CBN sacked the board of Skye Bank and appointed a Bola Tinubu nominee as MD in July 2016, it injected N690bn into the bank now it has revoked the bank's licence but still with the same MD in charge and injected another N786bn, meaning CBN has given N1.476tn to Skye Bank.

Ok