LAGOS — Oceanic Bank,Monday, said it will transfer 100 per cent of its share capital to Ecobank Transnational Incorporated, ETI, and merge its operations with ETI’s local unit in a bid to recapitalise ahead of the Central Bank of Nigeria, CBN, September deadline.

Oceanic said ETI will pay N38.5 billion ($24m million) worth of its ordinary shares and N16.5 billion in preference shares for total control of the rescued Bank.

It said the shares will be paid to existing shareholders and a state-owned asset management company AMCON, without stating in what proportion.

Oceanic will hold a shareholders’ meeting on September 27 to approve the deal.

In a statement, Oceanic Bank said: ”ETI will own 100 per cent of the share capital of Oceanic Bank, while existing shareholders of Oceanic and AMCON will become shareholders in ETI. Subsequent to this, ETI will merge Oceanic Bank with Ecobank Nigeria.”

Under the deal, holders of Oceanic Bank will get one ordinary share and 0.428 preference share of ETI for every 20 Oceanic shares held on October 4, 2011.

Oceanic will subsequently be delisted from the Nigerian Stock Exchange.

Oceanic is the fourth lender to reveal details of its recapitalization plans.

AMCON was set up last year to absorb non-performing loans from nine rescued lenders including Oceanic in exchange for government bonds, making them attractive for new investors to recapitalize them.

Oceanic and ETI subsequently signed a merger agreement in July, paving the way for the rescued lender to be recapitalized, in what shareholders’ hope will draw a line under Oceanic’s crisis.