By Peter OBIORA InvestAdvocate

Lagos (InvestAdvocate)-Shareholders of Intercontinental Bank Plc (IB Plc) Monday endorsed the recapitalisation and merger deal with Access Bank Plc. This is coming on the heels of a Court Ordered Meeting in Lagos Nigeria.

From the Special Resolution, following the Scheme of Arrangement dated August 25 2011, the shareholders approved that the issued Ordinary Share Capital of the Bank be reduced to from N9.453billion comprising 18.906 billion Ordinary Shares of 50 kobo each to N1 billion comprising two billion fully paid Ordinary Shares of 50 kobo each through the cancellation of the 5.056 billion shares fully paid Ordinary Shares which were purchased and the pro rata cancellation of 11.850 billion Ordinary Shares of 50kobo each in the Shares Capital of the Bank such that the number of Ordinary Shares to be held by each existing shareholder on the capital of intercontinental Bank subsequent to the cancellation above shall be in the ratio of 1 ordinary shares for every 7 Ordinary shares previously held by the existing shareholder.

The shareholders also approved that the scheme shares shall be issued and allotted as follows: 3,000,000,000 Ordinary Shares of 50 kobo each shall be issued and allotted to the Asset Management Corporation of Nigeria (AMCON) via a Placing, in consideration for the injection of the financial accommodation amount and 15,000,000,000 Ordinary Shares of 50 kobo each shall be issued and allotted to PSI Limited via Private Placement in consideration of the investment amount; That share premium account be reduced from N146.712 to N0 , to offset the negative retained earnings as at the effective date.

Following this development, the Shareholders of Intercontinental Bank approved the delisting of the Bank from the Daily Official List of the Nigerian Stock Exchange (NSE).

As a result of the successful approvals of the Special Business of the Extraordinary General Meeting (EGM), the Directors of Intercontinental Bank will on Tuesday September 27 2011 apply to Nigeria’s Central Bank and the Securities & Exchange Commission (SEC) for the approval of the merger scheme and file petition at the High Court to sanction the business combination.

It is expected that on Wednesday September 28 2011, the Court Sanction will formally be lodged with the Corporate Affairs Commission (CAC) and same documents filed with the CBN, the SEC and the NSE. While on Thursday September 29, the Directors of Intercontinental Bank will apply for delisting of its shares from the Nigeria Exchange.