By Investadvocate

Lagos (INVESTADVOCATE)-Both the Shareholders of Nigeria’s Sterling Bank Plc and Equatorial Trust Bank (ETB) Wednesday endorsed the Merger and Acquisition Deal of the two Banks. With this development, Sterling Bank has now assumed the Asset and Liabilities of ETB.

This is coming on the heels of Extraordinary General Meeting (EGMs) of both Banks in Lagos Nigeria.

Following this approval, Sterling Bank will issue two Ordinary Shares of 50 Kobo per share in exchange for one Ordinary Share of N1.00 per share of ETB.

Also, in the Merger and Acquisition deal, existing shareholders of Sterling Bank will have 80 percent (80%) holdings; while the Asset Management Corporation of Nigeria (AMCON) and shareholders of ETB will own 10% respectively. 

Suleiman Adegunwa, Chairman of Sterling Bank said the business combination would make the Bank become a strong and formidable Institution with wider Branch network and retail franchise.

He affirmed that with the values both Banks possess, which include professionalism; would contribute to benefitting its Shareholders and Customers.

“We also envisage that the emergent Sterling Bank from the merger would be a Market Leader in service delivery in all locations with branches well situated in metropolitan centres in Nigeria with attractive demographic characteristics,” he said.

In the same vein, Yemi Adeola, Managing Director (MD) of Sterling Bank affirmed that the Bank will consider increasing earnings, reduce overhead costs and take advantage of the merger of both Banks to improve on its Market Share.

According to him, the Merger deal would lead to economies of scale that would reduce the operating cost and at the same time, increase the Market share of the Bank and increase its revenue.

“With this merger, we are laying the foundation for future earnings growth and better financial performance. We expect to increase earnings, cut costs and significantly build shareholder value,” Adeola said.

In his reaction, Boniface Okezie, the President of Progressive Shareholders Association of Nigeria (PSAN) said shareholders endorsed the Merger and Acquisition Deal because they were carried along and supports the move.

Okezie further expressed its confidence that the Management of Sterling Bank would ensure an increased value for shareholders.