By InvestAdvocate

Lagos (INVESTADVOCATE)-Investors in the Nigerian Capital Market (NCM) are selling off their Skye Bank Plc shares following the decision of the Central Bank of Nigeria (CBN) to dissolve the board and management of the Bank.

MK Ahmad, chairman of Skye Bank on Friday told stakeholders at the Nigerian Stock Exchange (NSE), that the reconstitution of the board of the Bank by the CBN was not a takeover; but an intervention to correct observed corporate governance issues under the old board.

According to him, the ownership of the Bank remains in the hands of the shareholders, he said the CBN does not own the Bank and has not taken over. He affirmed the apex Bank was fully behind Skye Bank and would support it to fully stabilise.

Ahmad, a former Director General (DG) of the National Pension Commission, further re-assured the Bank’s customers and investors that Skye Bank was not distressed but only had corporate governance challenges. He said the Bank’s fundamentals remain strong and that it remains one of Nigeria’s leading and retail Banks.

In his remarks on the occasion, the Group Managing Director/Chief Executive Officer (GMD/CEO) of Skye Bank, Tokunbo Abiru, said the management team and the board would work to achieve value enhancement for shareholders, customers and other stakeholders by bringing the cost-income ratio to acceptable levels, improve the risk assets quality and work towards increasing the liquidity and capital adequacy of the Bank.

Abiru described the reconstitution of the Bank’s board as an intervention and not a takeover by the CBN, saying the lender’s fundamentals are good and strong.

Shares of the Lender on Friday ended the week down 17.14 percent to 0.87 kobo from N1.05 traded the on Monday’s session following a three-day holidays; losing 0.18 kobo per share.