Sterling Financial Holdings Company (Sterling HoldCo) Plc has secured shareholder approval for a major capital restructuring and a fresh fundraising programme of up to $400 million as the financial services group positions itself for future growth and regulatory compliance.
The approvals were granted at the company’s 3rd Annual General Meeting (AGM) held virtually on June 9, 2026, according to resolutions released by the company on June 11.
Under the approved restructuring plan, shareholders authorized the consolidation of Sterling HoldCo’s 68.5 billion ordinary shares into 6.85 billion ordinary shares at a ratio of 10 shares for every one share held.
Following the consolidation, shareholders also approved the cancellation of approximately 61.65 billion issued shares, resulting in a reduction of the company’s issued share capital to ₦3.43 billion comprising 6.85 billion ordinary shares of 50 kobo each, subject to regulatory approvals and confirmation by the Federal High Court.
The company said the amount arising from the capital reduction will be transferred to a share reconstruction reserve account and applied in accordance with applicable laws and management decisions.
Shareholders Approve $400 Million Capital Raise
In one of the most significant resolutions passed at the AGM, shareholders authorized the company to raise up to $400 million or its equivalent in naira and other currencies through various funding instruments.
The fundraising programme may be executed in tranches through debt securities, bonds, preference shares, ordinary shares, global depositary receipts or a combination of instruments across domestic and international capital markets.
According to the resolution, the capital may be raised through public offers, private placements, rights issues or other structures deemed appropriate by the Board, subject to regulatory approvals.
The approval provides Sterling HoldCo with substantial financial flexibility as Nigerian financial institutions continue to strengthen capital positions and pursue expansion opportunities across banking and non-banking segments.
Directors Re-Elected
Shareholders also approved the re-election of Ms. Aisha Bashir and Mr. Abubakar Suleiman as directors of the company following their retirement by rotation.
Members further re-elected Alhaji Mustapha Jinadu, Ms. Christie Vincent and Mr. Idongesit Udoh as shareholders’ representatives on the Statutory Audit Committee for the 2026 financial year.
The Board’s representatives on the committee include Mr. Shola Adekoya, a Non-Executive Director, and Ms. Eniye Ambakederemo, an Independent Non-Executive Director.
Non-Executive Directors’ Fees Approved
At the meeting, shareholders approved an aggregate annual remuneration of ₦191.13 million for the company’s Non-Executive Directors for the financial year ending December 31, 2026, pending future review at subsequent annual general meetings.
Strategic Positioning
The approved capital restructuring and fundraising mandate come as Nigerian financial institutions continue to adjust their capital structures in response to evolving regulatory requirements and growth ambitions.
Analysts believe the combination of share consolidation, capital reduction and fundraising flexibility could enhance Sterling HoldCo’s ability to optimize its balance sheet, support expansion plans and strengthen its competitive position within Nigeria’s financial services sector.
The Board was also authorized to take all necessary regulatory, legal and administrative steps required to implement the approved resolutions.