September 26, 2011 11:57 AM
Lagos, Nigeria – The shareholders of Intercontinental Bank plc have approved the restructuring of the company’s share capital and recapitalization, bringing to a successful conclusion the planned merger or business combination with Access Bank plc.
The special business of the meeting held in downtown Lagos was the authority given to the bank’s Directors to give effect to increase the authorized share capital to 10bn naira of 20bn ordinary shares by the creation of 12.406bn ordinary shares of 50kobo each. The shareholders also approved the Directors recommendations to place 3.0bn ordinary shares of Intercontinental Bank plc to the Asset Management Corporation or AMCON in consideration for the injection of financial accommodation amount.
In a unanimous yes vote, the shareholders agreed the injection of 50bn naira capital by Access Bank plc into Intercontinental Bank plc. In consideration of this, the meeting approved the placing of 15bn ordinary shares of 50kobo each to Project Star Investments Limited, the investment vehicle for the merger and acquisition deal.
Following the successful approvals of the special business of the EGM, the Directors of Intercontinental Bank will tomorrow apply to the Central Bank and the Securities & Exchange Commission for the approval of the merger scheme and file petition at the High Court to sanction the business combination.
On Wednesday, the court sanction will formally be lodged with the Corporate Affairs Commission and same documents filed with the CBN, the SEC and the Stock Exchange. On Thursday this week, the Directors of the rescued lender will apply to the NSE for delisting of shares.
In the business of financial injections, the timetable presented to the shareholders today shows the settlement date of the financial accommodation by AMCON to be September 29. On the same day, the investment amount will be credited into the bank’s account with the Central Bank and on Friday this week, the Directors will allot shares to the existing and new shareholders of the financial institution.
In an interview, Mahmoud Alabi, the Group Chief Executive of the bank said it has been a unique experience for him through hard work of himself, the board and staff to bring the troubled commercial lender to a safe harbour.
Report filed by: Boason Omofaye (MBC News Corp)