Access Bank seeks 75% equity in Intercontinental Bank

Access Bank Plc has made a bid to acquire 75 per cent interest in Intercontinental Bank Plc, an official of the bank told the News Agency of Nigeria (NAN) on Monday.

The official, who preferred anonymity, told NAN that Access Bank intended to acquire the majority shares through a private placement before Sept. 30.

It was learnt that the aim was to beat the Sept. 30 deadline set by the Central Bank of Nigeria (CBN) for all banks to recapitalise.

He said that Access Bank Plc had earmarked N53.5 billion from the proceeds of its 2007 public offer for the acquisition.

In its invitation to shareholders to attend an extra-ordinary general meeting (EGM) on Sept. 26 in Lagos, Access Bank proposes only three special businesses for investors’ consideration.

The board, in the letter, sought the permission of shareholders to acquire 75 per cent interest in Intercontinental Bank and to authorise the board to enter into a merger with Intercontinental Bank.

The board also wants the shareholders to authorise the use of N53.5 billion from the 2007 offer proceeds for the deal.

 Intercontinental Bank will also seek the permission of its shareholders to reduce the bank’s share capital to N1 billion from N9.5 billion.

If agreed to by the shareholders, Intercontinental Bank's shares will be two billion ordinary shares down from its existing 18.9 billion ordinary shares of 50k.

The shareholders of Intercontinental Bank will also exchange their shares in the ratio of one ordinary share of Access Bank for every seven ordinary shares of Intercontinental Bank previously held.

Three billion ordinary shares of the merged shares will be issued and allotted to Assets Management Corporation of Nigeria (AMCON) while another 15 billion shares will be allotted to Project Star Investment through private placements.

The share premium account of Intercontinental Bank will be reduced to zero from N146.7 billion to offset the negative retained earnings in line with the Companies and Allied Matters Act.

Besides, the shares of Intercontinental Bank will be de-listed from the Nigerian Stock Exchange.

NAN recalls that the Intercontinental Bank had in July signed a Transaction Implementation Agreement with Access Bank Plc after an earlier Memorandum of Understanding in March.

The two banks, in a joint statement, said that the merger would offer unique returns for the shareholders. (NAN)