Sep 2 (Lagos) – Further details have emerged regarding the merger between Access Bank and Intercontinental Bank. Access will complete its acquisition of Intercontinental Bank Plc, a bailed- out lender, in October 2012, Chief Executive Officer Aigboje Aig-Imoukhuede told investors. For daily updates on the Nigeiran financial environment, visit http://www.easykobo.com
The banks will become a “single entity” then, Intercontinental shareholders can currently sell their stock to Access Bank at 2.75 naira ($ 0.02) each, he said. The shares of Intercontinental Bank are currently trading at 70 kobo at the Nigeria Stock Exchange.
Access Bank shareholders face dilution of between 4-6% when the deal is completed. “The dilution affect of the transaction on Access shareholders will be … at best case 4 percent and at worst case 6 percent … after the merger,” Access CEO Aigboje Aig Imokhuede told a conference call with investors.
Furthermore, shareholders in rescued rival Intercontinental Bank will own 10 percent of the merged entity after the two banks merge at the end of this month.
Access Bank CEo also said that ANCOM, the government “bad bank” created to recapitalise nine rescued banks in 2009, would get 15 percent of it.
Access Bank shares are trading higher by 4% to N 5.85 today.
On Monday, Access Bank Plc said that that it planned to spend 50 billion naira ($ 323 million)to recapitalise rescued rival Intercontinental Bank and combine both businesses within 12 months of the merger.
Access Bank and Intercontinental said in a statement to shareholders from which it is seeking approval for the deal that the combined entity remain listed on the Nigerian Stock Exchange, and that they expected to complete the transaction by sept 30.
It said the capital injection will take Intercontinental over the regulatory 10 percent minimum capital adequacy levels.
The bank said on Monday it would seek shareholders approval to acquire a 75 percent stake in Intercontinental, drawing on 53 billion Nigerian naira it had raised in 2007 to fund the transaction.
Access Bank PLC announced that it will seek shareholders approval to acquire a 75% stake in rescued rival Intercontinental Bank and use N 53 billion ($ 342.6 million) it had raised in 2007 to fund the transaction.
Access said in a statement it will hold a shareholders meeting on September 26 to sanction the transaction. It signed a merger agreement with Intercontinental Bank in July, paving way for the troubled lender to be recapitalized ahead of a central bank deadline. Intercontinental was one of nine banks rescued in a $ 4 billion bailout by the central bank in 2009.
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