..Shareholders approve Intercontinental -Access Bank merger .

by Timi Olubiyi 27. September 2011 10:09

Intercontinental investors to get one for seven shares held

Shareholders of Access Bank and Intercontinental Bank yesterday unanimously granted the necessary approvals for the proposed business combination of both banks.The emerging entity will be known as Access Bank.

The approvals come after similar considerations by the boards of both banks, the judiciary and relevant regulatory authorities.

The resolutions of yesterday’s 26-09-2011, meetings are now subject to the final sanction of the Federal High Court of Nigeria. It is intended that Intercontinental Bank Plc will be merged with  Access Bank Plc within 12 months of the completion of the scheme. The combination is expected to result in the emergence of one of Africa ‘s largest financial institutions, with the transaction offering unique growth opportunities for the combined entity and excellent prospects for shareholders.

Meanwhile, holders of Intercontinental Bank shares will retain one out of every seven shares of 50 kobo, credited as fully paid up for, in the recapitalised Intercontinental Bank.

This revelation, made to shareholders at the bank’s court-ordered meeting held Monday in Lagos , is prior to the effective date of scheme for the re-organisation of capital and the recapitalisation of the bank.

Also, existing shareholders who wish to sell their retention shares within 90 days of effective date, have the option to sell the shares at the offer price, to Project Star Investment Limited (PSI Limited) – a private limited liability company established by Access Bank, for the singular purpose of investing in Intercontinental Bank.

Raymond Obieri, chairman, Intercontinental Bank plc, told shareholders at the meeting that the decision was in line with a recommended transaction structure which has been agreed to, under terms set out in a Transaction Implementation Agreement (TIA) signed on July 6, 2011 between Intercontinental Bank plc, represented by the board of directors and Access Bank plc.

In a related development, Access Bank shares lost 0.26 kobo to close at N4.95, from an opening price of N5.19kobo, at the Nigeria Stock Exchange yesterday. Investors traded 2,277,085 shares of Access Bank, valued at N11.393million. Also, at 0.70kobo per share in three trades, 73,200 shares of Intercontinental Bank valued at N51, 240 were traded.

This development comes on the heels of bearish sentiment which have continued to trail equities.Commenting on the outcome of Access Bank’s General Meeting yesterday, Aigboje Aig-Imoukhuede, Chief Executive Officer of  the bank, said:“ This is an important milestone in the bank’s history and we are confident that it is a necessary and right step to ensure the bank is well positioned for future growth in the emerging Nigerian banking landscape. The protection of shareholder returns remains our priority and we will take steps to ensure the enhancement of shareholder returns over the medium to long term.”

Mahmoud Alabi, Chief Executive Officer of Intercontinental Bank, added:
“We would like to thank our shareholders for supporting the Board of Directors of Intercontinental Bank in its belief that the proposed business combination with Access Bank will provide considerable benefits and opportunities to the shareholders, customers, staff and other stakeholders of the Bank. This is an exciting opportunity for the bank and our stakeholders to become part of one of the leading banks in Nigeria . Critically, the process will ensure the survival of the bank, saving it from possible liquidation or nationalisation while enabling shareholders to preserve some value in their shareholding with the bank.”   27-09-2011

 

source: Business Day

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