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FCMB completes Finbank buyout



Friday February 10, 2012

Nigeria's First City Monument Bank said on Friday it has completed the acquisition of rescued lender Finbank, which it says will double its branch network and customer base.

FCMB shares were up almost 4 percent on Friday at 4.10 naira per share.

The mid-size lender has won all necessary regulatory approvals for the deal and Finbank will become a wholly-owned subsidiary, it said in a statement to shareholders.

Finbank was among nine lenders rescued by central bank in 2009. Four of the bailed out banks have since merged with rivals while three others were nationalised for failing to find merger partners. The ninth reduced its size to survive.

FCMB which operates from 133 branches said the buyout ends the recapitalisation process for Finbank but it did not disclose how much it paid for the stake.

Finbank has 180 branches and is worth around a tenth of FCMB's value of 104 billion naira. 


Source: Reuters (Reporting by Oludare Mayowa)

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