Shareholders of Skye Bank Plc on Monday approved the acquisition of Mainstreet Bank Limited by the lender.

The shareholders gave the approval at a court-ordered Extra-ordinary General Meeting of the bank, which was held in Lagos immediately after the lender’s 9th annual general meeting in Lagos.

A statement from the bank said that during the consideration of the bank’s proposed scheme of external restructuring, which deals with the acquisition and how to consolidate the operations of both banks, the Chairman, Skye Bank, Mr. Tunde Ayeni, said the Securities and Exchange Commission had given its clearance to the scheme.

Ayeni explained that after the receipt of the scheme clearance from the SEC, an application was filed at the Federal High Court which directed the meeting of the shareholders of the banks be convened and the scheme be presented for their consideration and approval.

On the benefits and effects of the scheme, which gives legal seal to the acquisition, the Group Managing Director and Chief Executive Officer, Skye Bank, Mr. Timothy Oguntayo, was quoted as saying that the proposed restructuring would create a platform where significant synergies could be obtained for the benefits of the shareholders, employees, customers and the economy as a whole.

Other benefits, according to Oguntayo, include the opportunity to reposition the enlarged Skye Bank as a Tier 1 bank within the Nigerian financial services space based on the expected benefits arising from economies of scale and scope.

He said, “A business combination of this nature will potentially lead to revenue enhancements and cost savings for the enlarged Skye Bank with a wider customer base.”

The Skye Bank boss explained that the scheme would provide an additional buffer to the existing capital base of the bank in the event of subsequent recapitalization directives by the CBN, addition to presenting an opportunity to create a stronger risk asset portfolio for the enlarged bank.

The shareholders also approved the appointments of four new executive directors by the Board of the bank.   The new Executive Directors are Mr. Bayo Sanni, Executive Director, Lagos Commercial Banking; Mr. Idris Yakubu, Executive Director, Abuja and Northern Region; Mrs. Markie Idowu, Executive Director, Technology and Service Delivery Channels; and Mrs. Abimbola Izu, Executive Director, Corporate services.

Announcing the new board appointments, the Group Managing Director/Chief Executive Officer of the bank, Mr. Timothy Oguntayo, expressed confidence that the new directors would further strengthen and reposition the bank for improved performance. He congratulated them on their appointments which he said would take effect in June and July 2015.

Punch