Ailing Oceanic Bank International Plc on Tuesday announced that its recapitalisation programme would be unveiled in August.
Oceanic Bank's recapitalisation announcement is coming on the heels of some financial institutions' current jostling to acquire the government bailed out bank. Investigations showed that Ecobank Transnational International (the parent body of Ecobank Nigeria), Diamond Bank and Helios Private Equity have so far signified interest.
It was gathered from sources within the bank that the management of Oceanic Bank had concluded arrangement for recapitalisation in spite of bids for the bank's acquisition.
"The bank is in progress to sign memorandum of understanding with a potential core investor which will be disclose d to the stakeholders in August," a source told the News Agency of Nigeria on Tuesday. He said that as soon as the bank concluded its recapitalisation, the Asset Management Company of Nigeria (AMCON) would hopefully inject some seed funds to bring Oceanic Bank net asset value to zero.
According to him, the completion of the bank's recapitalisation would enhance its capital adequacy and place it among one of the strongest financial institutions in Nigeria.
Meanwhile, Abdulrahman Yinusa, Diamond Bank's chief financial officer yesterday confirmed that it's indeed holding talks with Oceanic Bank on a possible acquisition.
Analysts at Renaissance Capital, an investment bank, said Diamond Bank having shut its door on merger and acquisition last year, "we expect investors would not only struggle to understand this U-turn but also the disruption to that fairly clear retail exposure which Diamond Bank offers."
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