Peter OBIORA investadvocate

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria has affirmed that it has not approved any Memorandum of Understanding following speculations and unsavoury comments on the proposed mergers and acquisitions of rescued Banks. As it is subject to Board of Directors and Shareholders approval.

This was contained in a Release Monday March 28 2011 by Mohammed Abdullahi, Head Corporate Communications of the Apex Bank and posted on its website.

The Release affirmed that The Central Bank of Nigeria has noted with concern various speculations and unsavoury comments on the proposed mergers and acquisitions of Rescued Banks and wish to categorically state that no approval for any Memorandum of Understanding (MOU) has been granted by the CBN so far.

“Whereas the trend of signing the MOUs is welcome and shows the intrinsic value that investors see in Nigerian Banks and the process signals that the solution to the banking crisis is in the horizon; MOU can only lead to actual transaction if and when CBN issues no objection and other regulatory approvals. The CBN and other Regulators will ensure that all relevant factors, including professional advice from the Financial Advisers are adequately considered before any approval is granted” the Release said.

Nigeria’s CBN further affirmed that the process which is being driven by the parties involved and not the CBN will have to be approved by the Board and Shareholders of the Banks concerned. Therefore, all speculations and unsavoury comments on the process are premature and unnecessary.

“For the avoidance of doubt, the CBN and other relevant Regulators will be guided by appropriate considerations including due diligence on investors and the advice provided by Financial Advisers to the parties before approving MOUs and subsequent transactions” the CBN noted.

This is coming on the heels of recent announcements made by Union Bank of Nigeria Plc (UBN) that it has recently executed a Memorandum of Agreement (MOA) with the African Capital Alliance Consortium, the core investor selected by the Bank’s Board of Directors.

Also, Access Bank Plc and Intercontinental Bank Plc Monday March 28 2011 issued a Release announcing that they have signed a Memorandum of Understanding (MOU) for the purpose of business combination of both institutions which will result in the emergence of one of Africa’s largest financial institutions.

Both Banks said the MOU signing follows the completion of a competitive, rigorous and transparent selection process and the approvals of the Board of Directors of both banks.