By Omoh Gabriel, Business Editor
Some existing shareholders in Intercontinental Bank may have buckled under the weight of pressure from the CBN to accept the acquisition of the bank by Access Bank PLC. Indication to this effect emerged weekend as the scheme of merger which was submitted to the Securities and Exchange Commission SEC by Access Bank PLC received official nod of approval.

SEC spokesman Mr. Lanre Oloyi confirmed the approval saying that the merger scheme has been approved and will now go to shareholders for consideration and final approval.

He did not give details. However, those close to the drafting of the scheme said all the existing shareholders of Intercontinental bank were accommodated and given five per cent stake in the new bank that will arise from the combination of Intercontinental and Access Bank.

The scheme of the proposed combination will be presented to shareholders for approval in a court sanctioned Extra Ordinary Meeting EGM. Already some of the aggrieved stakeholders of Intercontinental Bank are in court challenging the CBN intervention in the bank.

It was gathered that Access Bank is billed to be the core investor with about 60 per cent stake while Asset Management Company of Nigeria AMCON, will have 35 per cent.

The existing shareholders will be left with the remaining five per cent stake in the bank to emerge after share reconstruction.

Vanguard Investigation revealed that some of the pioneering major shareholders of Intercontinental Bank are weighing the option of losing everything to allowing the recapitalisation of the bank which will give them some level of accommodation even if marginal.

This position it was gathered is being looked into as the threat of nationalizing the rescued banks come September 30, will give them no room or stake in the event that AMCON takes over the bank. Associates of some of the principal shareholders said that if AMCON is allowed to take over the bank, it may manage it for some years and later still sell the bank perhaps to some favoured individuals. As a result, the major shareholders are most likely to support the new arrangement to avoid losing their investments completely.

According to the source many of the shareholders are disposed to this arrangement following their disappointment with the former management of Intercontinental Bank which did not carry them along in the running of the bank which resulted in the removal of the executive management of the bank. It was also gathered that the approach adopted by the current Managing Director of Intercontinental Bank softened the minds of some of the major shareholders in that most of the policy direction of the bank was discussed with them.

See details in Financial Vanguard