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Acquisition: Intercontinental Bank shareholders to get 10% of new entity

BY PROVIDENCE OBUH, with Agency report
LAGOS— Access Bank Plc said, yesterday, that shareholders of Intercontinental Bank Plc will be left with 10 per cent of their holdings in the new entity that will emerge after the conclusion of the proposed merger scheduled to end by month end.

Access Bank, in a statement by its Chief Executive Officer, Mr. Aigboje Aig-Imokhuede, also said the Asset Management Corporation of Nigeria, AMCON, will get 15 per cent, while Access Bank will take the remaining 75 per cent.

He further said the combination of both banks is expected to be concluded within 12 months of the merger, adding that the new entity will remain listed on the Nigerian Stock Exchange.

Access Bank had announced plans to utilize N50 billion in recapitalizing Intercontinental Bank, taking over the 10 per cent minimum capital adequacy levels as required by the Central Bank of Nigeria.

The bank had in a notice signed by its Company Secretary, Mr. Sunday Ekwochi, announcing its forthcoming extraordinary general meeting, disclosed that the said amount is proceeds from its 2007 public offer.

The bank said it will be seeking the approval of its shareholders, at the meeting scheduled to hold September 26, 2011, to enable it consummate the acquisition of Intercontinental Bank.

According to the notice, the bank will be seeking the approval of shareholders, 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 authorized share capital of Intercontinental Bank Plc, under a private placement.

The bank is further seeking shareholders’ approval to the extent 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 authorized to take all steps as may be required for the bank to enter into a scheme of merger by which the undertakings of the company shall be merged with the undertaking of Access Bank Plc at such a 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.

“That subject to any required approval from the regulatory authorities, the Directors be and are hereby authorized to utilize the sum of N53.47 billion standing to the credit of the bank’s 2007 Public Offer Proceeds Account or any part thereof as at the date thereof for the purpose of making the investment.”

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