PETER OBIORA

Proshare NI

January 19, 2009 at 08:51 GMT

There appears to be renewed hope for depositors and investors of Societe Generale Bank of Nigeria (SGBN) as the Bank have floated a Private Placement (PP) to shore up its Capital Base so as to bounce back to operations. A source close to Proshare NI made this affirmation at the Nigerian Stock Exchange (NSE) in Lagos Nigeria.

As earlier reported, over three years ago, SGBN went under, in the wake of the consolidation exercise directed by the Federal Government (FG) through the Central Bank of Nigeria (CBN).

SGBN was among the banks that were discovered by the CBN to have lost their shareholders funds and could not merge with or acquire any other Bank.

Therefore, the licence of the Bank was revoked in 2005 over its reported inability to meet with the directive of the CBN for all Banks to increase their capital base to N25 billion.

As at the time of filling in this report, all attempts made by Proshare NI to confirm the true situation was not successful; as none of our sources could give details as regards the SGBN’s Placement. These include the amount to be raised, at what price, closing and opening date, Issuing House and so on.

Also as earlier reported, on April 01 2008, a Federal High Court sitting in Abuja voided the revocation of SGBN’s operating licence by the apex Bank over three years ago.

However, prior to this time, it has been reported that SGBN has concluded plans and would soon raise N34 billion. Already reports also has it that the Bank has mobilised about N4 billion. Details of this would be reported by Proshare NI as soon as more information emerges.