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Bond Bank in Talks with New Investors

Posted by Stories by Ayodele Aminu on 2005/08/23 | Views: 439 |

Bond Bank in Talks with New Investors


Smarting from its botched merger arrangement with Investment Banking and Trust Bank Plc (IBTC) as exclusively reported by THISDAY weekend, Bond Bank Limited is said to have commenced discussions with some foreign partners who have indicated interest in the bank.

* Manny signs MoU with Union Bank


Smarting from its botched merger arrangement with Investment Banking and Trust Bank Plc (IBTC) as exclusively reported by THISDAY weekend, Bond Bank Limited is said to have commenced discussions with some foreign partners who have indicated interest in the bank.

Also, Manny Bank Plc one of the two banks left in the Astrabank Group has yesterday signed a Memorandum of Understanding (MoU) with Union Bank of Nigeria Plc.

According to information, Bond Bank was said to have opened discussions with the new investors, when it became apparent that its merger talks with IBTC was not yielding the desired results.

If the discussions with the new investors finally come to fruition, Bond Bank with its current N12 billion capital base, most of which came from its private placement of shares late last year, could still maintain its franchise and acquire some smaller banks along the line.

Though the Managing Director and Chief Executive officer of the Bank Mr. John Darlington could not be reached to comment on the development, it was learnt that the bank last week had series of meetings with institutional investors who have indicated interest in partnering with the bank.

Valuation of the assets of Bond Bank among other management and board issues as exclusively reported by THISDAY, led to the collapse in talks between the IBTC and Bond Bank teams earlier in the month.

The institutional investors, according to information, were said to have been impressed with the Bond Bank brand especially in the area of service culture, Information Technology deployment, banking software the work culture and architecture of the branches.

Valuation and organogram appears to be the key issues that are tearing various merger groups apart. This development has led to a major realignment of some merger groups.

Last week, the merger arrangement of banks in the Astra Bank also recorded realignment with two banks - First Atlantic Bank Plc and Guardian Express Bank Plc pulling out into two different groups, leaving behind the other two banks (Assurance Bank and Manny Bank) in the group. While First Atlantic Bank joined Inland Bank to form another group known as First Inland Bank, Guardian Express Bank moved to the Platinum/FSB International Bank Group. Inland Bank. Manny Bank yesterday also signed a MoU with Union Bank, while Assurance Bank is said to be discussing with another group.

Another bank, Hallmark Bank Plc, in the First Consolidated Bank Group (FCB), may have also realigned as reports have it that it has indicated interest in acquiring ACB International Bank Plc and a yet to be identified bank.

The FCB, which was the first group to sign a Memorandum of Understanding (MoU) last year initially, comprised five banks, Allstates Trust Bank, Gulf Bank of Nigeria Plc, Lion Bank, Allstates Trust Bank Plc, Universal Trust Bank and Hallmark Bank Plc. Gulf Bank and later Universal Trust Bank pulled out to join Union Bank of Nigeria Plc couple of months. Thereafter, Lion Bank left to join Diamond Bank, leaving behind Allstates Trust Bank Plc and Hallmark Bank.

Other banks that are realigning in their consolidation talks include the SKYE bank group which now comprises Prudent Bank and EIB International Bank Plc, the two banks left the Sterling Bank team.

In the same vein, Habib Nigeria Bank Limited, Fountain Trust Bank and NUB International Bank whose merger agreement with Absa has been put on hold following the purchase of the latter by Barclays Bank of the United Kingdom are also said to have realigned.



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