August 23, 2011
In furtherance to the Transaction Implementation Agreement (TIA) signed by the management of Sterling Bank Plc and Equitorial Trust Bank Limited (ETB), both institutions Monday revealed plans to merge their business operations.
Both banks explained in an advertorial in THISDAY Monday that execution of the TIA will lead to the recapitalisation of ETB and the merger of both financial institutions.
THISDAY had earlier reported the deal by both financial institutions.
A TIA is an agreement which defines the relationship between the rescued bank and its potential investors. It also explains how the financial terms are spelt out. The TIA document, which is usually bulky, officially announces the engagements by the parties.
“The complementary strength of both institutions underscores the compelling merit of the transaction and will provide enhanced growth prospects as well as attractive financial returns for all stakeholders.
“The parties will now commence the process of a scheme of merger, which will now be subject to approval of the shareholders of Sterling Bank Plc and ETB as well as the approval of the Central Bank of Nigeria, the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange and the Federal High Court,” they explained.
ETB is therefore among the five rescued banks that have signed TIAs and working towards the September 30 deadline.