The merger between First City Monument Bank Plc and Finbank Plc has reached completion stage as shareholders of Finbank have given approval for the redemption of shares.
A statement from FCMB on Tuesday noted that holders of the issued and fully paid preference shares of FinBank voted in favour of variation/redemption of their shares by a significant majority at a court-ordered meeting held in Lagos.
The statement, signed by its Group Head, Corporate Communications, Mr. Kenny Aliu, noted that at the meeting, which was witnessed by regulatory authorities, the shareholders approved the resolutions that the irredeemable non-cumulative preference shares of the bank be varied into redeemable non-cumulative preference shares.
Also approved at the meeting was a resolution that the bank be granted the option to redeem the varied shares and that the right of the preference shareholders in the varied shares be converted to the right to receive the sum of one naira (N1) per varied share.
It quoted the Chairman of FinBank’s Board of Directors, Dr. John Udofa, as saying that the terms of the scheme were fair and reasonable.
He noted that the scheme would ensure positive returns to the preference shareholders and avoid a potential total loss in value to shareholders. If FCMB were not to pursue the acquisition, the case might have been different, it stated.
The ordinary shareholders of FinBank had passed a resolution approving the scheme of merger between FinBank and FCMB, at a court-ordered meeting in September.
The combination, when fully consummated, will result in a bank with significantly larger market share in terms of customers, branches and assets.
Meanwhile, equity trading activities on the Nigerian Stock Exchange closed on a negative note on Tuesday, with major indictors shedding 0.3 per cent.
The NSE’s All-Share Index closed at 19,951.13 points, down from 20,015.66 points the preceding day, representing a decline by 0.3 per cent.
Similarly, the market capitalisation of the listed equities dropped by 0.33 per cent or N21bn, from N6.3tn recorded the previous day, to N6.28tn.
The NSE-30 Index lost 0.4 per cent or 3.22 basis points to close at 888.72 basis points while the NSE Banking Index dropped to 263.70 points, down from 264.22 points the preceding day.
The banking sub-sector recorded drove total volume on Tuesday, accounting for 79 per cent of turnover traded.
In the sub-sector, 128.95 million shares, worth N706m were exchanged in 1,916 transactions.
Volume in the sub-sector was driven by trading in the shares of Zenith Bank Plc and Unity Bank Plc.
Source: Punch/Udeme Ekwere
