By Yakubu LAAH investadvocate

Lagos (INVESTADVOCATE)-Afribank Nigeria Plc has announced that it has signed a Memorandum of Understanding (MOU) with its Core Investors.

This was contained in a notice Tuesday April 05 2011 from the Bank to the Nigerian Stock Exchange (NSE) and made available to investadvocate in Lagos Nigeria.

Ther notice reads thus: “The Bank has notified The Exchange that further to its December 10, 2010 announcement vides our Market Bulletin Ref: ISD/12/09/010, The Board of Directors of the Bank has signed a Memorandum of Understanding (MOU) with a potential core investor -Vine Capital Partners Limited and Phoenix Acquisition Company Limited” the Notice affirmed.

According to Afribank, Vine Capital Partners is an Emerging Markets Private Equity Firm, with an interest in Banking and Financial Services in Sub-Saharan Africa. The Vine Capital Consortium is made up of local and International firms.

The Bank further affirmed that process will be subject to the approval of the Shareholders and Regulatory Authorities.

This is coming on the heels of a Statement Monday March 28 2011 from Nigeria’s Apex Bank the Central Bank of Nigeria (CBN); affirming that it 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 it so far.

The Apex Bank in the Statement went ahead to state that 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 Statement said.

The Nigeria’s Central Bank said 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.