M & A: Ecobank to Delist from NSE

Ecobank Nigeria Plc Wednesday notified the Nigerian Stock Exchange
(NSE) of its intention to delist from the Exchange. This follows a
proposed reorganisation of its share capital that will make its parent
company, Ecobank Transnational Incorporated own its 93 per cent.

Ecobank  Nigeria and Oceanic Bank International Limited  are
subsidiaries of  ETI, following  its recent acquisition of Oceanic Bank.
However, directors of Ecobank said that they had  agreed to merge its
business with Oceanic Bank  and would leave Ecobank as the surviving
entity.

According to the bank, as a consequence of the proposed merger, it is
expected that ETI’s shareholding in the enlarged Ecobank Nigeria will
increase from its current 85 per cent to approximately 93 per cent.
This,  the bank explained,  would further reduce Ecobank Nigeria’s
minimum free float to maintain listing on the NSE.

Therefore, Ecobank said its Board of Directors met on November 17 and
after considering  considering the valuation advice of BGL Plc,
financial advisers to Ecobank Nigeria as well as an independent fairness
opinion issued by Afrinvest (West Africa) Limited, unanimously accepted
a proposal from ETI to acquire the  shares of the minority
shareholders.

Under the terms of the Scheme of Arrangement minority shareholders will
receive one ordinary share in ETI  to be credited as fully paid for
every 5.16 Ecobank shares previously held by the minority shareholders,
such that Ecobank Nigeria will be a wholly-owned subsidiary of ETI.

The directors of Ecobank Nigeria said that  the proposed Scheme of
Arrangement was in  the interests of both Ecobank Nigeria and its
shareholders.

“The proposed Scheme of Arrangement will enable holders of Ecobank
Nigeria scheme shares to own equity in ETI, which is a more liquid
stock, listed on the three major West African stock exchanges (NSE,
Ghana Stock Exchange and The Bourse Régionale des Valeurs Mobilières)
and with attendant diversification benefits from ETI’s operations in 32
countries,” they said.

Ecobank Nigeria was listed on the NSE in April 24, 2006.Despite the
news of the proposed delisting,   share price of Ecobank rose by 4.4 per
cent to close higher at N2.13 per share.

However, trading at the stock market was generally bearish as  the NSE
All-Share Index fell by 1.12 per cent  to close at 20,070.63, compared
with a marginal growth  the previous day. Market capitalisation shed N72
billion, dipping from N6.388 trillion to close at N6.316 trillion.

The bears visited 26 stocks as against the bulls that visited only 12
equities. Dangote Cement Plc led the price losers with N3.67 to close at
N100.33, while Forte Oil Plc led the price gainers with N0.70 to be at
N14.79 per share.

2 Comments

1. 

   Minnkulla

   November 28, 2011 at 7:42 am

   ECOBANK ARE CRIMINALS THEY UNDERVALUE BANKS ANDFORCEFULLY TAKE OVER.WATCH OUT ECO.TIME WILL TELL
2. 

   Burdettlouis

   December 20, 2011 at 10:18 pm

   I have been informed that there is USD $1,000,000.00 in an account   is someone using  your bank to sponsor a scam .. On return email  they tell me the manager,s name is  OYELOLA JAMES  sounds to good to be true     MR.L Burdett         If i do have this money coming you should have my email ——send reply