Ahead of the Central Bank of Nigeria’s, CBN, September 31 deadline for the recapitalisation of rescued banks, Oceanic Bank International Plc, yesterday, announced that it has entered into Transaction Implementation Agreement, TIA, with Ecobank Transactional Incorporated, ETI. The merged entity may eventually become third largest bank in the country.
Speaking at a press briefing in Lagos, yesterday, Group Managing Director, Oceanic Bank, Mr. John Aboh, said: “The bank has recorded an important milestone in the process of its recapitalization. Oceanic Bank will begin the process of seeking regulatory and shareholders approvals in accordance with the relevant laws of the Federal Republic of Nigeria.”
It will be recalled that the CBN had issued an extended deadline of September 31, 2011, with the proviso that failure to meet the directive would lead to liquidation or nationalisation of the banks by the apex bank.
The eight rescued banks include: Oceanic Bank International Plc, Afribank Nigeria Plc, Intercontinental Bank Plc, Union Bank of Nigeria Plc, Finbank Plc, Bank PHB, Spring Bank, and Equitorial Trust Bank (ETB).
Aboh said: “The CBN has conveyed its no objection for the bank to enter into the TIA with ETI. This deal with benefit both shareholders and employees of the merged entity as it will become the second or third largest bank in Nigeria. The Oceanic Bank has 376 branches, Ecobank Nigeria has about 244 branches this will take the bank to 620 branches.
He noted that this will include the provision of full transaction’s details at the appropriate time.
According to Aboh, Oceanic Board is confidence that the transaction will be completed within the required time line to comply with the CBN’s deadline.
Accordingly, he advised shareholders to exercise caution until when the dealing in the Bank’s share transaction are fully disclosed.
Responding to question on pending litigation by shareholders on the issue of new investors being sought for the Bank, Aboh disclosed that there were no litigation by shareholders, stating that the only legal action taken against the Bank was the one initiated by the former Managing Director, Cecilia Ibru, which has been settled since October 2010.
On the outlook of the merger, he said, “ It would be a great deal for the Bank’s shareholders who will have an enhanced shareholders for their investors, while allaying fear of loss of jobs by employees.
According to him, “ The deal is not a cash transaction but an exchange of shares which is preferable to the Board and shareholders.”
Also , speaking at the briefing, Apostle Heyford, Alile, Chairman of Oceanic Bank, said, “ Shareholders have nothing to worry about as we have confidence that we will get approval from the regulatory authorities. The stock market will appreciate greatly from this transaction. For the workers in the bank they can never have a better deal than this.”
Ecobank Transnational Incorporated is the parent company of the Ecobank Group, a pan African banking group with the banking operations in 31 African countries and France, as well as representative offices in South Africa, London, Angola and Dubai.
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Oceanic, Ecobank sign merger agreement
Oceanic, Ecobank sign merger agreement
NigerianEye
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Monday, August 01, 2011
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