By Udeme Ekwere

Access Bank Plc and Intercontinental Bank Plc have finally signed a Memorandum of Understanding for the purpose of combining the business of both institutions.

Our correspondent gathered on Friday that the MoU was signed following the approval of the Board of Directors of the two banks.

A joint press statement by the two banks, obtained by our correspondent said, “The business combination will offer unique opportunities for both institutions. The retail banking operations of Intercontinental Bank coupled with the wholesale and commercial banking strength of Access Bank offer a high degree of synergy and complementarities; unique in the Nigerian banking environment. 

“The synergy from combining the two banks will therefore create a formidable competitor with scale to rival the top banks in the industry.”

In signing the MoU, the two institutions agreed that their business combination was of systemic importance and would result in a significant degree of capacity in the Nigerian banking sector that would otherwise have been lost in the event of non-resolution of any of the rescued banks.

The statement said, “Critically, the transaction provides a safe harbour for the depositors of Intercontinental Bank and the seamless continuation of banking services to their considerable customer base. 

“It will also create a market leading platform from which the combined entity can capitalise on growth opportunities.”

It, however, added that the process would be subject to necessary shareholder, regulatory and judicial approvals in accordance with international best practices.

Meanwhile, at the close of equity trading activities on Friday, Intercontinental Bank gained 1.3 per cent or two kobo to close at N1.48 per share, while Access Bank lost 2.9 per cent to close at N8.64 per share.

United Bank for Africa Plc led 35 other stocks on the price losers’ chart, shedding five per cent to close at N8.74 per share.

Costain West Africa Plc fell by 4.9 per cent or 28 kobo to close at N5.39 per share, while Guaranty Trust Assurance Plc and Presco Plc lost 4.8 per cent each to close at N1.75 and 6.42 per share in that order.

On the other hand, Champion Breweries Plc gained 4.83 per cent or 21 kobo to close at N4.56 per share.

Union Bank of Nigeria Plc and Oando Plc also appreciated by 4.7 per cent each to close at N3.50 and N62 per share, while Transnational Incorporated Plc was up by 4.4 per cent to close at 93 kobo per share.

 

Source: Punch