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.
Source: vanguardngr.com/2011/08/oceanic-ecobank-sign-merger-agreement/
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