The chief executive officer of Oceanic Bank, John Aboh today says the shareholders approval of the merger deal with Ecobank Transnational Incorporated or ETI will benefit them in the areas of improved cash and bonus dividend as ETI operates as a pan-African commercial lender. The shareholders of the rescued lender Oceanic Bank plc today approved the merger and acquisition deal with ETI at a court ordered meeting held in Lagos.

 The owners of Oceanic gave the Directors their resounding approval to give effects to the merger scheme that will lead to the eventual transfer of Oceanic Bank plc shares to ETI and the merger with Ecobank Nigeria Plc.

 Only 1,000 unit holders voted NO, only 2,450 unit holders abstain while 2.561mn unit holders votes were voided. By today’s shareholders’ vote, Oceanic bank will be delisted from the Nigerian Stock Exchange and be re-registered as a private company.

 John Aboh further said the deal with ETI is the best of all the rescued banks deals in which the existing shareholders get an accommodation of 44.65% of the new shareholding structure. The Asset Management Corporation will own some 55.35% shares of Oceanic. Aboh said the total cash injection of AMCON into Oceanic shall total some 251bn naira to reduce the current negative share capital to zero and recapitalize the lender to regulatory requirements of 10%.

 The merger deal approved today is due to be filed with relevant government agencies beginning from today while the placing of the new shares with ETI and AMCON will be effected on October 5.

Report filed by: Boason Omofaye (MBC News Corp)

Source: Proshare