Access Bank to Acquire 75% Stake in Intercontinental

GMD and CEO, Access Bank, Mr. Aigboje Aig-Imoukhuede

Access Bank Plc yesterday said its Extraordinary General Meeting (EGM), scheduled to take place on September 26, is to enable it to get the approval of its shareholders to acquire a 75-per-cent stake in Intercontinental Bank Plc.

The bank, which disclosed this in an advertorial in THISDAY, also said it intends to fund the transaction from the N53.471 billion “standing to the credit of the bank’s 2007 public offer proceeds or any part thereof as at the date thereof for the purpose of making the investment”.

Part of the special business of the EGM which is expected to hold in Lagos reads: “That subject to any approval from the regulatory authorities, the Directors be and hereby authorised to enter into a transaction for the acquisition of the bank through a Special Purpose Vehicle of 75 per cent controlling equity interest in the authorised share capital of Intercontinental Bank Plc under a private placement.

“That pursuant to the implementation of the foregoing resolution and subject  to any required approval from the regulatory authorities, the Directors be and are hereby authorised to take all steps as may be required, for the bank to enter into a Scheme of Merger by which the whole undertakings of the company shall be merged with the whole undertakings of Access Bank at such time the Directors may determine and upon such terms and conditions that the shareholders may approve subsequent to a Court Ordered meeting to be convened for that purpose.”

Intercontinental Bank was among the banks rescued by the Central Bank of Nigeria (CBN) in 2009.
Both Access and Intercon-tinental Banks had signed a Transaction Implementation Agreement (TIA) in July this year, to enable the rescued bank to beat the September 30 recapitalisation deadline by the banking sector regulator.

Group Managing Director and Chief Executive Officer, Access Bank, Mr. Aigboje Aig-Imoukhuede, had said that “Access has critically analysed inorganic growth opportunities as they have arisen since the Central Bank of Nigeria’s (CBN) audit in August 2009. We have identified Intercontinental as an entity which will significantly complement our business model and support our growth ambitions. The transaction enhances our retail banking offering and extensively increases our distribution platform through Intercontinental Bank’s impressive branch network thereby consolidating Access Bank’s position as a market leader in the Nigerian banking sector.

“Our protection of shareholder returns remains a priority and the proposed combination with Intercontinental has been entered into with the view of enhancing shareholder returns for both entities over the medium to long term, while also preserving the capacity and stability of the Nigerian banking sector.”