Shareholders Approve Access, Intercontinental Bank Merger
Further to regulatory and legal approvals of the business combination between Access Bank Plc and Intercontinental Bank Plc, shareholders of both institutions unanimously sanctioned the business combination at their court-ordered meetings in Lagos on Friday.
By this approval, the entire share capital of Intercontinental Bank Plc. has been cancelled and the bank dissolved without being wound up. Consequently, all assets, liabilities and undertakings of Intercontinental Bank Plc., including its real properties and intellectual property rights have been transferred to Access Bank Plc.
The shareholders also approved that the certificate of incorporation of Access Bank Plc shall be the certificate of incorporation of the resultant company from the Business Combination.
According to the scheme of merger, “The certificate of incorporation of Access Bank shall be the certificate of incorporation of the resultant company. However, the scheme of merger will be subject to the subsequent approval of the Securities and Exchange Commission and the Central Bank of Nigeria to the sanction of the court”.
Addressing shareholders, Group Managing Director, Access Bank, Aigboje Aig-Imoukhuede, said the bank was committed to sustainable banking practice and would continue to conduct its business in ethical and transparent manner with due consideration for stakeholders interest.
Further, he said the business combination would lead to cost savings for the merged entity and that it would also take critical steps to upgrade its Information Technology platform for effective services.
Also, he added that the merger would position the bank for business opportunities that would present themselves in the power and agric sectors as well as in e-payment to boost investment and growth of the institution.
With this development, the two banks have made history as the first to conclude their business combination in the ongoing Nigerian banking sector reform necessitated by the Central Bank of Nigeria’s bid to strengthen and make the financial system healthier and more efficient.
The successful execution of the business combination between Access Bank Plc and Intercontinental Bank Plc signals the reordering that will take place in the hierarchy of top 5 financial institutions in the sector.
Specifically, Access Bank, by virtue of this combination, now ranks the fourth largest bank in the second in size and was better positioned to one of Africa’s largest financial institutions with excellent prospects for future growth.