Posted by By Peter Egwuatu on
The management of Ecobank Nigeria Plc has described the unit price of its on-going public offer as the best possible bargain on offer from any bank within its peer group. The bank is currently offering 4.8 billion ordinary shares of 50 kobo each at N3.20 kobo per share on the Nigerian market in a new issue that will close on August 19.
The management of Ecobank Nigeria Plc has described the unit price of its on-going public offer as the best possible bargain on offer from any bank within its peer group. The bank is currently offering 4.8 billion ordinary shares of 50 kobo each at N3.20 kobo per share on the Nigerian market in a new issue that will close on August 19.
Speaking at Abuja during an investors' forum of the bank, Mr. Thomas Chukwu Awagu, director of Ecobank Nigeria, said 'Banks of relatively low performance have gone to the market for N4.00 and above. So the N3.20 is actually a give away price." Awagu forecast a big rise in the share price of the bank once the merger being hammered out with Chartered Bank and Regent Bank is consummated.
Ecobank Nigeria Plc is very optimistic that the proposed merger would create a stronger customer and shareholder value for the group and significantly multiply the fortunes of the merger partners. The three banks are negotiating a merger to be known as Chartered Ecobank. The merger deal is in compliance with the directive of the Central Bank of Nigeria that banks should embrace merger or opt for acquisition as a means of raising their share capital to a minimum of N25 billion required of each of them by the end of December, 2005. Explaining the choice of Chartered Bank as merger partner, Awagu said Ecobank and Chartered Bank are compatible institutions that have over the years demonstrated strong commitment towards good ethical practice. He suggested that a successful fusion of Ecobank, Regent Bank and Chartered Bank into one institution would take Nigerian banking to a new level of quality service and value creation for all stakeholders in the sector.
Stakeholders in the bank who gathered in Abuja last week at the investors' forum learnt from the directors of the bank that the offer proceeds will be used to finance the bank's strategic business development, upgrade its information and communications capacity, build more branches to extend the reach of its network nationwide and enhance its working capital. The bank explained that it has to implement an ambitious but strategic investment plan in order to achieve a big jump in the bank's market share and take full advantage of emerging opportunities in the nation's financial markets.
Ecobank is currently scouting for more than N15 billion from the capital market through a public offer. The offer is going well on the market, according to officials of the bank. The bank has 40 branches within the country, including centres within designated NetPost/NIPOST offices.