Access Bank Plc has said that investors in Intercontinental Bank would own 10 per cent of the merged entity after the two banks conclude their transactions at the end of this month.
Speaking at a conference with investors, the chief executive officer of Access? Bank, Aigboje Aig Imokhuede,? said that? Assets Management Corporation of Nigeria (AMCON)? created by the federal government to recapitalise nine rescued banks in 2009, would get 15 per cent of the bank’s? share.
He further said that shareholders would face a dilution of their shareholdings after an upcoming merger with Intercontinental Bank? between 4 and 6 per cent.
“The dilution affect of the transaction on Access Bank shareholders will be at best situation 4 per cent and at worst case 4? per cent after the merger,” he added.
The bank had earlier said that it planned to inject? N50 billion ($323 million) to recapitalise the rescued bank and acquire a 75 per cent stake in it, taking it over the? 10 per cent minimum capital adequacy levels.
It planned to combine both businesses within 12 months of the merger and it would remain listed on the Nigeria Stock Exchange(NSE).
The banks said in a statement it would hold an extra ordinary meeting on September 26 to seek approval from its investors that would enable it conclude the transaction.
Access Bank signed a merger agreement with Intercontinental Bank in July, paving way for the troubled bank to be recapitalised ahead of? the deadline given to it by? Central Bank of Nigeria, (CBN).
?Intercontinental was one of nine banks rescued in a N620 billion bailout by the apex bank in 2009.
It would be recalled that? Access Bank for its half year financial result ended June 2011 recorded gross earnings of N52.5 billion, indicating a surge of 6.2 per cent? compared N49.4 billion June 2010.
The bank’s total operating income rose by 8.1 per cent to N40.2 billion as against N37.1 billion posted in the comparative period of last year.
Also, the bank within the period under review posted profit before tax of N10.4 billion, representing growth rate of N6 per cent against N9.8 billion recorded in the corresponding period of 2010.
The result further showed that total assets and contingents of the bank stood at N1.28 trillion; a growth of 23 per cent compared to N1.044 trillion in December 2010, while loans and advances went up by 19 per cent to N541 billion from N456 billion as at December 2010.? ?
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