Trading in the shares of Fortis Global Insurance Plc has been suspended on the Nigerian Exchange (NGX) to facilitate the reconciliation of shareholder records ahead of the listing of the company’s reconstructed shares.
The suspension was announced by NGX in a notice to Trading License Holders and the investing public.
According to the Exchange, the temporary halt in trading is necessary to enable the company’s Registrars and the Central Securities Clearing System (CSCS) Plc to reconcile their records in preparation for the listing of the reconstructed shares on the NGX.
The Exchange stated that the exercise is a critical step in ensuring the accuracy of shareholder information and the seamless implementation of the company’s share reconstruction programme.
“The suspension is necessary to prevent trading in the shares of Fortis Global Insurance Plc to enable the Company’s Registrars and the Central Securities Clearing System Plc (CSCS) to reconcile their books for the listing of the reconstructed shares on Nigerian Exchange Limited,” the notice read.
NGX further explained that the trading suspension is also required to determine the shareholders who will be entitled to receive the reconstructed shares once the exercise is completed.
Share reconstruction is a corporate action through which a company consolidates or reorganises its existing shares, often to improve the stock’s market profile, enhance liquidity management, or comply with regulatory and strategic business objectives. During such exercises, trading is commonly suspended to allow market operators and registrars to establish an accurate shareholder register and ensure that all entitlements are correctly allocated.
Market analysts noted that temporary trading suspensions associated with share reconstruction exercises are standard practice in capital markets and are designed to protect investors while maintaining the integrity of the settlement and clearing process.
The reconciliation process involving the company’s Registrars and CSCS is expected to establish the final list of eligible shareholders who will receive the reconstructed shares before trading resumes on the Exchange.
While the suspension remains in effect, investors will be unable to buy or sell shares of Fortis Global Insurance Plc on the NGX until the reconciliation exercise is concluded and the reconstructed shares are admitted for trading.
The Exchange has not yet announced a date for the lifting of the suspension, but market participants are expected to receive further updates once the reconciliation process and shareholder entitlement determination have been completed.
(The Whistler)