Shareholders Consent to FCMB/FinBank Merger
First City Monument Bank (FCMB) Plc would strap up synergies from its amalgamation with FinBank to contend efficiently in the top tier of the Nigerian banking industry.
This declaration drew closer whilst shareholders of FCMB and FinBank at the weekend accepted the combination of the two banks. The vote for the business amalgamation was almost undisputed with 99.98 per cent of FCMB shareholders voting in favour of the joining decree. The merger had previously been accepted by financial services regulators.
The complete share capital of FinBank has been annulled and the bank liquefied, since the approval of the shareholders without being wound up. As a result, all assets and liabilities of FinBank, as well as its real properties and intellectual property rights, have been reassigned to FCMB.
The chairman, FCMB, Dr Jonathan Long and chairman, FinBank, Dr John Udofa in a joint address said that the post-merger FCMB would boost its market accomplishment and tie together other functioning synergies to achieve economies of scale and contend successfully in the top league of the banking sector.
“The ongoing reforms in the Nigerian banking sector has created a dynamic and competitive environment, in which market leaders are likely to be those banks which have the lowest cost of funds, together with the strongest liquidity and capital adequacy ratios,” they stated.
They said the boards of the two banks supposed that the business amalgamation would lead to noteworthy financial returns in the medium and long-term.
In a discuss after the meeting , group managing director, First City Monument Bank, Mr. Ladi Balogun noted that the endorsement was an significant footstep in the growth of FCMB.
The previous six months have been testing, the administration of the bank is certain that with the deal almost done, it will completely take in the expected financial and strategic benefits and see rate accumulation in the nearest future, he asserted.
“I am grateful to our shareholders who have been supportive and patient during the entire integration process. The 99.98 per cent support for the transaction is a strong validation of its benefits to all shareholders. I also appreciate the continued dedication and focus of my colleagues at both banks as this process evolved,” Balogun said.
He noted that FCMB is one of Nigeria’s most lasting institutions with a solid name as a leading comprehensive banking group and a well-run and speedily rising retail banking authorization.
“We look forward to building on this capability as a merged entity, with a greater focus on our customers,” Balogun added.
The shareholders’ endorsement, the next step for the bank is to file the shareholders’ decree with the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN) and the Federal High Court, he explained.
Based on his explanation, as soon as the bank gets final authorization, the last phase of the procedure is likely to be concluded in days at which point the two banks will begin operations as one.