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The Central Bank of Nigeria on Monday dissolved the Management and Board of Skye Bank Plc following months of speculation about the financial health of the bank. The CBN confirmed this via a circular on its website explaining why it took this decision. The CBN explained that it took this decision because Skye Bank had failed a stress test that it conducted on the bank.
Here are some vital information for every Skye bank customers, shareholders and the population as a whole:
1. For those who own shares in Skye Bank, now is the best time to sell off your shares because of uncertainties that might come with the take-over.
2. At the first trading of the take-over, Skye Bank shares dropped significantly by 9.5% to 95 kobo on Monday as investors rushed to dump the stock. At a point there was over 80 million units on offer with no buyer.
3. Skye Bank results are not yet out so we expect a major write down leading to significant losses maybe reported. As such we won’t see dividends from this company any time soon.
4. Skye Bank’s share price may rise in again if it secures or announces a new strategic financial investor.
5. In the event that the bank gets a major investor to provide the required capital, the value of your shares might get heavily diluted.
6. A recent Rencap report suggest that Skye Bank shareholders may have lost about 99% of their investments in the bank.
For those who borrow money from the bank?
7. Small Businesses who owe Skye Bank loans and have defaulted in payments should get set for an aggressive push to recover the loans. The new management will likely come down hard on them threatening to publish their names or call on their collaterals.
8. If you are however on the verge of securing a loan from Skye Bank then count yourself unlucky as that loan may not be granted by the new management. No matter how far you have gone in your negotiations, you will likely be put on KIV (Keep In View)
9. You should also expect new negotiated terms of your loan agreement if it is close to the end or on the verge of a renewal. Since the resignation of Management was mostly because of the bad loans on their books, the new management may likely want to renegotiate the terms of those loans
For those doing business with the bank?
10. For suppliers or contractors of Skye Bank, it is advisable that you hold on from delivering further supplies to the bank till you are very sure of how you get paid. If you supply essential products that the bank needs, then they pay you. If otherwise, apply caution and don’t fall victim
11. Make sure that you also secure all your documentation and get them ready in case you are called in during any investigation or request for proposals.
12. A new management also means an opportunity to know new people and get a mutually beneficial supply deal.
Credits: Nairametrics
Here are some vital information for every Skye bank customers, shareholders and the population as a whole:
1. For those who own shares in Skye Bank, now is the best time to sell off your shares because of uncertainties that might come with the take-over.
2. At the first trading of the take-over, Skye Bank shares dropped significantly by 9.5% to 95 kobo on Monday as investors rushed to dump the stock. At a point there was over 80 million units on offer with no buyer.
3. Skye Bank results are not yet out so we expect a major write down leading to significant losses maybe reported. As such we won’t see dividends from this company any time soon.
4. Skye Bank’s share price may rise in again if it secures or announces a new strategic financial investor.
5. In the event that the bank gets a major investor to provide the required capital, the value of your shares might get heavily diluted.
6. A recent Rencap report suggest that Skye Bank shareholders may have lost about 99% of their investments in the bank.
For those who borrow money from the bank?
7. Small Businesses who owe Skye Bank loans and have defaulted in payments should get set for an aggressive push to recover the loans. The new management will likely come down hard on them threatening to publish their names or call on their collaterals.
8. If you are however on the verge of securing a loan from Skye Bank then count yourself unlucky as that loan may not be granted by the new management. No matter how far you have gone in your negotiations, you will likely be put on KIV (Keep In View)
9. You should also expect new negotiated terms of your loan agreement if it is close to the end or on the verge of a renewal. Since the resignation of Management was mostly because of the bad loans on their books, the new management may likely want to renegotiate the terms of those loans
For those doing business with the bank?
10. For suppliers or contractors of Skye Bank, it is advisable that you hold on from delivering further supplies to the bank till you are very sure of how you get paid. If you supply essential products that the bank needs, then they pay you. If otherwise, apply caution and don’t fall victim
11. Make sure that you also secure all your documentation and get them ready in case you are called in during any investigation or request for proposals.
12. A new management also means an opportunity to know new people and get a mutually beneficial supply deal.
Credits: Nairametrics
