Monday, 11 November 2013

Nigeria: First Bank Notifies NSE On Acquisition of Ghana's Major Bank, ICB

Lagos — First Bank of Nigeria Holding (FBN) has finally confirmed that one of its subsidiaries, First Bank of Nigeria Limited (First Bank), has acquired 100 per cent equity interest in the West African banking assets of International Commercial Bank Financial Group Holdings in Ghana, Guinea, Gambia and Sierra Leone.
In September, when the news of the acquisition broke, First Bank denied it saying that the deal was yet to be concluded.
In a notice of the proposed Investment of First Bank of Nigeria Limited to the Nigerian Stock Exchange of the proposed acquisition last week and copy made available to Daily Trust, the company stated that it has received regulatory approvals for the transaction from the Central Bank of Nigeria (CBN) and the regulators in the respective countries and hopes to conclude the transaction soon. Update on the transaction will be provided by FBN Holdings Plc in due course.

First Bank is one of the strategic Deposit Money Banks in Nigeria which employs over 9,000 workers, services over 9 million customers' accounts, through about 807 business locations and over 2,200 ATMs. The bank is regarded as the most diversified in financial services in Nigeria.
With this acquisition, First bank will now join other Nigerian banks such as Guaranty Trust Bank, Zenith Bank, United Bank for Africa that have acquired stakes in major banks in Ghana and other West African countries.
Meanwhile in another memo to NSE, Costain (West Africa) Plc has said an order of court for the appointment of a Receiver Manager was obtained by First Bank of Nigeria Limited (FBN) against Costain in respect of a trade debt that arose in the normal course of business.
Costain said it has since made payment to partially liquidate the debt and both parties have entered into agreements for the complete liquidation of the debt.
The company stated that at no time did the Receiver Manager act on behalf of Costain pursuant to the court order and upon Terms of Settlement being reached; "Costain does not envisage the implementation of the order of Receivership. The Board of Directors of Costain remains in control of the management of the company and have assured its stakeholders and clients that Costain remains in business," it stated
Source: Daily Trust

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