May 5, 2011
The Bank has notified The Exchange that it has signed a Memorandum of Understanding
(MOU) with First City Monument bank (FCMB) Plc in respect of the recapitalization of FinBank Plc.
FinBank Plc further stated that the combination of the two Banks will create a strong financial institution which will be a major player in the Nigerian financial services industry and provide significant protection for shareholders and other stakeholders of both institutions. Furthermore, the combination will result in a financial institution with enhanced liquidity, capital adequacy, strong corporate governance and a broader branch network to enable it to compete effectively in the market.
Accordingly, the MOU will provide a framework for the process by which FinBank will be recapitalized and the process will be subject to the approval of the Bank’s shareholders, the Central Bank of Nigeria, the Securities and Exchange Commission, The Nigerian Stock Exchange and the Federal High Court.