Posted by THOMAS IMONIKE, Acting News Editor on
PLANS intensified yesterday for the emergence of the largest pan - African bank involving First Bank of Nigeria (FBN) Plc and Ecobank Transnational Incorporated (ETI) which are heading for equity swap.
PLANS intensified yesterday for the emergence of the largest pan - African bank involving First Bank of Nigeria (FBN) Plc and Ecobank Transnational Incorporated (ETI) which are heading for equity swap.
When consummated the deal will midwife a banking group which assets will be in excess of $5.5 billion (N715 bn) and over 470 branches and offices in no fewer than 13 West and Central African countries including Nigeria.
The group will also have a subsidiary in the United Kingdom and a representation office in South Africa. ETI is the parent company of Ecobank Group.
Ahead of the proposed banking group, First Bank also yesterday appointed four new executive directors to position the bank for emerging competition.
They are Mrs Bola Adesola, Messrs Remi Babalola, Oladele Oyelola, Alex Otti and Mr. Lamide Sanusi.
Unveiling the new appointments in First Bank, its Heads of Corporate Affairs, Toyin Abayomi-Banjo said they were as a result a "successful search for suitable personnel by the Bank's Board Nomination and Remunerations committee after a recent Board Strategy Retreat."
Four serving executive directors were reportedly eased out to create room at the top. On the new mega banking group, Managing Director/CEO of First Bank, Mr. Jacobs Ajekigbe said in a statement that the proposed group was awaiting "necessary corporate, shareholder, regulatory and statutory approvals."
According to the statement, Ecobank with over 110 branches in 13 countries in West and Central Africa including Nigeria, has considerable experience in managing banks across many countries, currencies, and regulatory environments.
On the other hand, FirstBank, Nigeria's oldest and biggest bank is one of the country's most stable and highly respected financial institutions and with over 360 branches spread all over Nigeria, a subsidiary in the United Kingdom, a representative office in South Africa, as well as 10 subsidiaries and associate companies in Nigeria.
The statement further said the combination of Ecobank and FirstBank will create a major pan-African financial institution with resources to compete in an increasingly competitive African banking sector currently attracting interest of not only major regional banks but also leading international banks.
"Ecobank and FirstBank both believe that the proposed combination will significantly enhance shareholder value by eliminating duplication and reducing operating costs through shared services. It is also anticipated that a combination of both institutions will have the resources to considerably grow revenues by expanding into new countries and market segments.
"FirstBank and Ecobank are in discussions with a view to reaching an agreement on the proposed combination. The agreement will cover issues such as shareholding structure, strategy, integration, management, governance, valuation, due diligence, and such other steps or actions that may be necessary in realising the objectives of the parties.
"Such discussions will also take into consideration the memorandum of understanding of Ecobank's Nigerian subsidiary with two local banks, Chartered Bank (together with Regent Bank) subject to the approval of all parties involved," the statement said.
It also quoted Chairman of the Ecobank Group, Chief Philip Asiodu as saying, "this combination marks the second phase of the evolution of Ecobank into a leading pan-African bank. In the first phase, Ecobank ushered in the era of indigenous regional banking in Africa and has grown over the past few years into a US$2 billion banking group, with shareholders from over 15 countries in Africa and beyond. Our shareholders include Francophone, Anglophone and Lusophone nationals and institutions".
On his part, Chairman of First Bank, Alhaji Umaru Mutalab, said, "the combination with Ecobank gives added meaning to the concept of globalisation and Nigeria's increasing integration into the global economy. By providing a platform that leverages FirstBank's strong domestic competences and Ecobank's unique and impressive transnational coverage, we are creating a sub-regional presence, with the financial wherewithal, the technological endowment, and the transaction know-how to intermediate the financing needs that will drive our continent's economic development".
To Arnold Ekpe, Chief Executive Officer of the Ecobank Group, Ecobank is a model of regional private sector integration and cooperation in Africa. "The proposed combination makes sense for our shareholders. It strengthens our leading position in the African banking industry.