8 December 2011

Nigeria: Access Bank to Boost Share Capital to N13 Billion

Lagos — Access Bank Plc said it will hold a shareholder's meeting on December 30 to discuss increasing its share capital to N13 billion ($80.47 million), from its current N10 billion, by issuing 6 billion new shares.

In October, Access completed the acquisition of its 75 percent majority interest in rescued lender Intercontinental Bank.

Intercontinental was one of nine banks rescued in a $4 billion 2009 Central Bank bailout.

All rescued lenders have now agreed to recapitalisation deals, bringing to a close a reform programme set-up two years ago to draw a line under the country's banking crisis.

Access said in October it grew its pre-tax profit by 16.78 percent to N16.42 billion in the nine months to September, compared to N14.06 billion in the same period last year.

Sequel to the completion of the acquisition of a 75 per cent stake in Intercontinental Bank Plc, Access bank said on Tuesday that the two banks would become one entity by March 2012.

The Federal High Court has directed that separate meetings of the shareholders of the two banks be convened, and that the Scheme of Merger be presented for their consideration and approval at the Court-Ordered Meetings to be held on December 30.

Access Bank in a notice to the Nigerian Stock Exchange said the bank has received requisite pre-approvals from the appropriate authorities in respect of the proposed Scheme of Merger.

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