Monday, 26 Sep 2011
The Managing Director, Intercontinental Bank Plc, Mr. Mahmoud Lai Alabi, has expressed optimism that the bank’s shareholders will approve the merger of the bank with Access Bank at an Extraordinary General Meeting today[Monday].
Alabi told journalists on Friday that the transaction between Access Bank and Intercontinental Bank would create value for Intercontinental Bank’s shareholders who would have lost their entire investments.
He said,“ I think what we have been able to achieve so far is to protect the depositors, to protect the creditors and other stakeholders and finally, we have been able to create some reasonable value for our shareholders, who in the ordinary course of business would have lost their entire investments. “Our expectation is that they are going to support us on Monday (today) and they are going to vote overwhelmingly for this transaction which will set the pace for others in the industry.”
According to him, the shareholders of the bank will, after the merger with Access Bank, get one Access Bank’s share for seven Intercontinental Bank’s shares.
Alabi said, “Originally, we were supposed to get one share of the new bank in exchange for 14 shares but by the renegotiation, it’s now one share for every seven shares. They now have double. Now they will be shareholders of a rejuvenated bank, a bank that will play a key role in the banking industry.
“We have been able to create a higher value in addition to not losing everything and having a 10 per cent for them, the future is also bright. This is far better when compared to the situation where not only would they have lost everything, they would have also become owners of a liquidated bank or a nationalised bank.”
He stated that after merging with Access Bank, the new entity would have a combined branch network of over 500 branches .
Source: The PUNCH/ By Martin Ayankola