22 September 2012

Nigeria: Shareholders Approve FCMB, FinBank Merger

MD,   FCMB, Mr.  Ladi Balogun,

Shareholders of First City Monument Bank Plc (FCMB) and FinBank Plc last Friday approved the business combination of the two banks.

At a court-ordered meeting, about 99.98 of FCMB shareholders voted in favour of the merger resolution, showing support and endorsement of the transaction and its benefits.

The meeting followed regulatory approvals of the merger including an approval-in-principle from the Securities Exchange Commission (SEC) last July.

As a result of the approval, the entire share capital of FinBank has been cancelled and the bank dissolved without being wound up. Consequently, all assets and liabilities of FinBank, including its real properties and intellectual property rights, have been transferred to FCMB.

Speaking at the meeting Group Managing Director of FCMB, Mr. Ladi Balogun, said the approval was an important step towards the successful merger of both banks. According to him, the merger is a pivotal moment in the evolution of FCMB.

"The last six months have been challenging - the delays we experienced have prevented us from achieving the synergies as quickly as we anticipated when we began this process.

We are confident that with the transaction almost complete, we will fully realise the anticipated financial and strategic benefits and see value accretion in the coming months. I am grateful to our shareholders who have been supportive and patient during the entire integration process.

The 99.98 per cent support for the transaction is a strong validation of its benefits to all shareholders. I also appreciate the continued dedication and focus of my colleagues at both banks as this process evolved," he said.

He noted that FCMB was one of Nigeria's most enduring institutions and with a solid reputation as a premier wholesale banking group and a well-run and rapidly growing retail banking franchise.

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