Proshare Logo
   Market Date: 01-08-2014   
Agriculture All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

Nigeria's Sterling to acquire privately-held ETB

Category: Mergers & Aquisitions


  Read (1887)
Nigeria's Sterling to acquire privately-held ETB


September  22,  2011

 

Nigeria's Sterling Bank said on Thursday it will issue 3 billion new shares to acquire privately-held Equitorial Trust Bank, paving the way for the rescued lender to recapitalize ahead of a central bank September deadline.

 

Sterling's Chief Strategist Yemi Odubiyi told Reuters the new shares would represent 20 percent of the enlarged bank after the merger is concluded.

 

He said existing shareholders of ETB and a state-owned asset management company will split the stake equally. He did not provide information on the value of the new shares.

 

"Sterling is offering ETB and AMCON shareholders 20 percent of the enlarged entity post-merger. It's not a cash consideration deal. Sterling will issue new shares representing 20 percent of its outstanding shares," Odubiyi said.

 

Nigeria's central bank injected $4 billion into nine lenders in 2009, saving them from collapse, and has been seeking new investors to recapitalize them.

 

It set up asset management company AMCON last year to absorb non-performing loans from the rescued lenders in order to make them attractive for new investors.

 

Odubiyi said the mid-tier lender expects to almost double its customer base and branch network following the deal. Sterling has 97 branches, which it has been seeking to grow, he said.

 

"On completion of this transaction, the merged entity will have 185 branches, over N360 billion in deposits, and N550 billion in assets," Sterling said in a statement, giving the rationale for the transaction.

 

Sterling and ETB signed merger agreements in August and expect to convene shareholders' meeting on Sept. 28 to approve the deal.


Source: Reuters/ Reporting by Chijioke Ohuocha and Oludare Mayowa; Editing by David Holmes

 

http://www.proshareng.com/quote/STERLNBANK



Tags: , 



Comment With Your Facebook or Yahoo! ID


Latest news


News on Mergers & Aquisitions

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Newsletter
Contact Us
Message from CEO
Resources

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
WebTV
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

#1minNews
News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Newsletters
Discussion Forum
Policy

Subscriber Agreement
Privacy Policy
Data Policy
Disclaimer
Copyright Policy
Trademarks
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Training
Legal Support Services
Web/Technology Services
File a Complaint