By Ademola Alawiye with agency report

Sterling Bank Plc has said it will transfer 20 per cent of the bank’s shareholdings to Asset Management Corporation and shareholders of Equitorial Trust Bank Limited after concluding the merger transactions.

The Chief Strategy Officer, Sterling Bank, Mr. Yemi Odubiyi, also said on Thursday that the bank would issue three billion new shares to accommodate the shareholders of ETB and AMCON.

Reuters quoted Odubiyi as saying that the existing shareholders of ETB and AMCON would split the stake equally, adding that the new shares would represent 20 per cent of the merged entity after the merger was concluded.

“Sterling Bank is offering shareholders of ETB and AMCON 20 per cent of the enlarged entity post-merger. It’s not a cash consideration deal. Sterling will issue new shares representing 20 per cent of its outstanding shares,” Odubiyi said.

Odubiyi stated that the mid-tier lender would almost double its customer base and branch network, following the deal, adding that Sterling Bank had 97 branches, which it had been seeking to grow.

The Sterling Bank and ETB deal, according to sources, has won the backing of the ETB board and the billionaire founder of the bank, Chief Mike Adenuga.

Sterling Bank had earlier said that on completion of the merger transaction, the merged entity would have 185 branches, over N360bn in deposits and N550bn in assets.

Sterling Bank and ETB signed merger agreements in August and ETB was expected to convene a shareholders’ meeting on September 28 to approve the deal.

At the meeting, part of the resolutions to be considered is whether the entire share capital of ETB should be cancelled and the bank be dissolved without being wound up.

Source: Punch