Oceanic Bank International Plc has signed Transaction Implementation Agreement (TIA) with Ecobank Transnational Incorporated (ETI) in respect of the recapitalisation of the bank.
The two banks entered into the agreement following the Board of Oceanic Bank’s official selection of ETI as its preferred bidder after its meeting last week.
Addressing Journalists yesterday Group Managing Director/Chief Executive Officer of Oceanic Bank, John Aboh, said that the bank was on track in meeting the Central Bank of Nigeria’s September 31, recapitalisation deadline.
He said that the execution of the TIA represents an important milestone in the process of recapitalising the bank, adding that the apex regulator, the CBN has conveyed its “no objection for the bank to enter into the TIA with ETI.
He further pointed out that with the signing of the agreement the bank and ETI would now begin the process of seeking shareholders and regulatory approvals in accordance with the relevant laws of the Federal Republic of Nigeria, including the provision of the transaction details to shareholders at the appropriate time.
He said that the Board of Director of Oceanic Bank remained confident that the transaction would be completed within the required time line to comply with the CBN deadline of September 30, 2011.
He urged shareholders of the bank to exercise caution when dealing in the bank’s shares until full transaction details were disclosed.
Speaking further on the transaction, he said that entering into TIA with ETI was a great day for the shareholders of both banks, noting that the deal was based on share exchange as no cash was involved.
He said that with Oceanic Bank and ETI branch network of 367 and 240 respectively, the total branches of the bank in future would increase to 620, thereby positioning it to be one of the largest banks in the country.
He said that Board’s decision to go into share exchange was because it beleived that it was better than cash.
Expecting that the shares of the bank would appreciate further in future, he said, “it is a good deal for both shareholders of the banks.”
ETI is the parent company of Ecobank Group, a pan-African banking group with banking operations in 31 African countries and France as well representative officers in South Africa, London, Angola among others.The deadline is firm, we are not going back from the deadline,” he added.