Access Bank finalise Intercontinental Bank takeover

Intercontinental Bank Plc has become a subsidiary of Access Bank Plc, making it the first rescued bank to complete its recapitalisation.

This follows the approval of the shareholders of Access Bank Plc and Intercontinental Bank Plc, sanction of the Federal High Court of Nigeria and the nod of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

In a joint statement from Intercontinental Bank and Access Bank, both institutions announced the completion of the recapitalisation of Intercontinental Bank and acquisition of 75 per cent majority interest in Intercontinental Bank by Access Bank Plc. This means that effective from today, Intercontinental Bank, including its assets, liabilities and undertakings, becomes properties of Access Bank Plc.

Consequently, on October 14, this year, the retiring Board of Directors of Intercontinental Bank Plc reconstituted its membership upon the request of Access Bank. Also, the reconstituted Board of Directors of Intercontinental Bank was announced in which Aigboje Aig-imoukhuede – the incumbent Group Managing Director of Access Bank  emerged Chairman; Herbert Wigwe – the Deputy Group Managing Director of Access Bank; Paul Usoro, Taukeme Koroye and Obinna Nwosu were appointed Non-Executive Directors. Ojini Olaghere and Segun Ogbonnewo emerged Executive Directors, while Victor Etuokwu was named Managing Director.

The statement also said: “The combined effect of the restoration of the Net Asset Value (NAV) to zero by the Asset Management Corporation of Nigeria (AMCON) and N50 billion capital injection by Access Bank Plc is that Intercontinental Bank operates as a well-capitalised bank,with shareholders funds of N50 billion and Capital Adequacy Ratio (CAR) of 24 per cent, well above the 10 per cent regulatory threshold.

“We are also pleased to announce that change of control process has been completed and the implementation of the business integration plan. Intercontinental Bank will be merged with Access Bank in the second quarter of 2012. In the interim, Intercontinental Bank will operate as a high performing subsidiary of Access Bank Plc, fulfilling all obligations to customers and other stakeholders.

“We are also pleased to announce that change of control processes for Intercontinental’s banking operations within Nigeria have been completed and we are working with host regulators to conclude change of control processes for its international banking subsidiaries,” the statement said.

The former Managing Director of Intercontinental Bank, Lai Alabi’s last day in office was Friday.

Other rescued banks -Union Bank of Nigeria Plc; Equitorial Trust Bank, which is being acquired by Sterling Bank Plc and  FinBank, that is coalescing with First City Monument Bank Plc, are also expected to fully complete their recapitalisation soon.

2 Comments

1. 

   Businessoracle

   October 17, 2011 at 2:21 pm

   this is the best news ever
2. 

   Businessoracle

   October 17, 2011 at 2:21 pm

   this is the best news ever