Posted by By Peter Egwuatu & Kelechi Madugba on
The Central Bank of Ni geria (CBN) has approved the Intercontinental Bank group merger, making it the second bank that have successfully completed the consolidation programme initiated by it last year.
The Central Bank of Nigeria (CBN) has approved the Intercontinental Bank group merger, making it the second bank that have successfully completed the consolidation programme initiated by it last year.
Also preparatory to its formal unveiling as a mega bank ,Intercontinental Bank Plc will on Tuesday in Lagos hold an Extra Ordinary General Meeting (EGM) where shareholders are expected to approve the merger with Equity Bank, Gateway Bank and Global Bank.
The apex bank had last March given its consent to the four sister banks, Intercontinental Bank, Equity Bank, Gateway Bank and Global Bank to come together as one bank as part of measures to comply with the new minimum capital base requirement.
In a letter dated September 27, 2005 signed by its Director of Banking Supervision, Mr. 0. A. Oladejobi, the apex bank said it has approved in principle the merger of the four banks, clearing the coast for the group to operate as a single entity.
The new Intercontinental Bank which is already set to roll out this month as one of West Africa's largest banking group with combined capital base of N50 billion and asset base of over N350 billion will be steered by a solid rock board and management team comprising some of Nigeria's finest and most experienced businessmen and seasoned bankers.
With its diversified businesses, financial strength, solid management team and stable board, Intercontinental Bank is well positioned to play a leading role in shaping competition in the new banking industry dispensation.
Dr Erastus Akingbola, will lead the new management team. The board, recently reappointed Akingbola and three other executive directors Mrs. Abiola Otaniyi, Mr. Nelson Nweke and Alhaji Sheriff Yussuf, while the erstwhile managing director of Equity Bank, Mr. Akin Ajayi, Mr Cletus Okoro, Olayinka Adebiyi and Olusegun Ajibola were appointed executive directors to beef up the board. Industry analysts said the reappointment of Dr Akingbola is a demonstration of the board's implicit confidence on his managerial acumen and professional integrity to pilot the affairs of the new mega bank.
The court ordered meeting which is the final passage rite for the merger of the four banks is to herald the high profile unveiling of the bank in a fortnight.Although the four banks had operated separately, they have in the last eight years shared an interwoven ownership structure, identical business models and group operational synergy, these industry analysts said contributed to the seamless union.
The new bank is expected to leverage heavily from the economy of scale and strategic spread of branch network in the 36 states of the country and its considerable operations across all sectors of the economy to dominate the industry.