By MICHAEL EBOH

Shareholders have approved the business combination of Intercontinental Bank Plc and Access Bank Plc. The shareholders, at a court-ordered Meeting in Lagos, also voted for the dissolution of Intercontinental Bank, without its wounding up, following its acquisition by Access Bank Plc.

The shareholders agreed that all the assets, liabilities and undertakings of Intercontinental Bank be transferred to Access Bank, including its real and intellectual properties right.

At the meeting, the shareholders further agreed that the entire share capital of Intercontinental Bank be cancelled while the certificate of incorporation of Access Bank serves the same purpose for the resulting entity that will emerge from the transaction.

Addressing shareholders, Aigboje Aig-Imoukhuede, Group Managing Director, Access Bank Chairman, Intercontinental Bank Plc, said the merger of both banks will provide considerable benefits and opportunities to the shareholders, customers, staff and other stakeholders of both banks.

According to him, the enlarged Access Bank will be a significant player in the Nigerian banking industry, adding that the market position of Access Bank will be strengthened, as it will emerge the fourth biggest bank in the country, in terms of total assets.

He further noted that Access Bank is committed to sustainable banking practice and would continue to conduct its business in ethical and transparent manner with due consideration for stakeholders’ interest.

In addition, he said that the business combination will bring about increased cost savings for the merged entity, adding that it would also take critical steps to upgrade its Information Technology platform for effective services.

Also, he added that the merger will position the Bank for business opportunities that will present themselves in the power and agricultural sectors as well as in e-payment to boost investment and growth of the institution.

With this development, Aig-Imoukhuede said the two banks have made history as the first to conclude their business combination in the ongoing Nigerian banking sector reform necessitated by the Central Bank of Nigeria’s bid to strengthen and make the financial system healthier and more efficient.

He said, “The successful execution of the business combination between Access Bank Plc and Intercontinental Bank Plc signals the reordering that will take place in the hierarchy of top five financial institutions in the sector.

“Specifically, Access Bank, by virtue of this combination, now ranks as the fourth largest Bank in Nigeria in size and is better positioned to be one of Africa’s largest financial institutions with excellent prospects for future growth.

“With a strategic branch network of over 500 branches across the country and over 1,600 Automated Teller Machines, ATMs, the combined entity will rank third in the industry in terms of network and service footprint, significantly enhancing Access Bank’s retail distribution platform.

“It will have the largest footprint in Port-Harcourt and several commercial centers as well as the second largest footprint in Lagos and Abuja. The critical mass will help the enlarged Access compete more efficiently.”