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From
the Banks |
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| Ecobank
Gets Shareholders Nod For N120b Offer |
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Shareholders
of Ecobank Nigeria Plc have at its annual general meeting (AGM)
in Lagos, passed an initial resolution approving plans by the directors
to approach the capital market for fresh N120 billion.
This followed a proposal by the board as part of the
'special business' of the meeting seeking permission to raise the
money “through any or all of the following: convertible loans,
debt, equity or by way of offer for subscription of shares by either,
or a combination of offer for subscription to the general public
with a preferential allotment to existing shareholders or rights
issue.”
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Coordinator, Independent Shareholders Association of Nigeria, Sunny
Nwosu enjoined fellow shareholders to partake in the offer to avoid
a situation as in the last public offer where because the offer
was not fully taken up, Ecobank Transnational Incorporated, the
parent company raised its stake to majority 71 per cent.
The coming offer, he believes, presents an opportunity for Nigerians
to reduce ETI's stake in the Nigerian subsidiary, which he noted
has since become the group's cash cow, emerging tops in terms of
contribution to the group's earnings and profit level among the
22 countries it has presence.
“There is nothing better than giving Ecobank our patronage
at this time,” he told fellow shareholders, especially with
the bank's swift response to the call by the Central Bank of Nigeria
to rescue the 14 liquidated banks post-consolidation, thereby giving
hope to the several depositors affected by the decision.
The shareholder however expressed worry about the preferential
allotment proposal, wondering if this is not another guise to shortchange
shareholders.
Chairman of the bank, Chief John Odeyemi while allaying the fears
of shareholders, promised that Ecobank Nigeria would be fair during
the offer, noting that the preferential allotment is a bid to take
care of the interest of some group.
The amount being sought, he explained, will enable the bank open
more branches before this year ends, in addition to the existing
215.
“We need to raise our capital to the same level as competition,
before we can begin to perform in the same level as our competitors.
We are expanding very rapidly”, explained Offong Ambah, chief
executive officer of the bank.
According to the result, gross earnings stood at N33 billion, representing
a rise of about 90 per cent from N17 billion, out of which profit
before tax stood at N10.09 billion, which was 101 per cent better
than the N5.01 billion recorded in the corresponding period of 2006,
while net profit improved from N3.55 billion to N7.44 billion.
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| Union
Bank, Arik Air to build hangar in Lagos |
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Arik Air and
Union Bank of Nigeria Plc have concluded arrangements to build a
super hangar in Lagos. Executive Chairman of
Arik Air, Sir Joseph Arumemi-Johnson who disclosed this in Seattle,
USA at a Boeing delivery ceremony (2 B737-NG) recently said that
Union Bank has agreed to fund the super |
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| hangar project,
even as the financial institution is currently supporting the airline
in its fleet expansion efforts.According to him, the super hangar,
when operational, would cater for a wide variety of airplane models
operating in the country.Arumemi-Johnson also revealed that the |
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| bank
has agreed to partner with the airline in other proposed infrastructural
projects as the entire nation would benefit from it in the long
run.
The Arik Air Chairman, who acknowledged the support of other financial
institutions like Zenith, Intercontinental Bank, Investec, EDC among
others in the company's fleet expansion programme, also assured
that the airline would remit funds according to laid down agreements.
He revealed further that the airline has agreed
with Boeing to bring forward its seven B737-700 NG delivery date
from 2013 to 2009 in order to address the acute aircraft shortage
staring the company in the face and added that the order has been
converted to B737-800 and 900 types.
Arumemi-Johnson disclosed that the airline would from July 1, 2008
commence operations as Niger's national carrier and from there spread
operations into many cities in Africa.
He appealed to Boeing to help train inspectors
from the Nigerian Civil Aviation Authority (NCAA) on latest technology
on aircraft performance as most of them were still clinging to the
classics model, thus dampening their oversight functions.
Also speaking at the event, Deputy Senate President,
Senator Ike Ekweremadu said Arik has demonstrated that the Public-Private-Partnership
initiative of the government was a good one, and enjoined other
private investors to follow suit. “Arik has really shown that
PPP can work. The airline has come a long way within a short time.
It has really acquired so many aircrafts within a short time and
that will help develop air transport within West Africa.
Ekweremadu further called on Boeing to keep
supporting Arik, even as he noted that the airline indeed was taking
the nation's aviation sector to the next level.
President/Chief Executive of Boeing Commercial Airplanes, Scott
Carson revealed that Arik has shown tremendous support for civil
aviation in Nigeria, stressing that the company would keep assisting
Nigeria's aviation sector in every way possible.
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UBA,
Arsenal FC Partnership Deal  |
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United Bank
for Africa Plc (UBA), West Africa's largest financial services
institution, has entered into an exclusive and strategic partnership
deal with the English football giant, Arsenal Football Club.
The deal, signed by officials of both
institutions at Emirates Stadium in London on May 27, 2008,
will see UBA and Arsenal collaborate on a variety of Arsenal
financial services and grassroots football initiatives. |
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The financial services will include co-branded electronic payment
solutions such as debit and credit cards for consumers in all West
African locations where UBA currently operates.
This partnership with Arsenal supports UBA's commitment to developing
grassroots football in Africa and the bank's strategy to spearhead
the use of electronic banking products in the continent. “African
youths yearn for inspiration.
They need to be inspired and given opportunities
to nurture their talents and achieve their dreams of becoming successful
football stars. This strategic alliance and other UBA football related
initiatives will go a long way towards achieving this," said
Angela Nwabuoku, Executive Director, Products and Segment Banking,
UBA.
Arsenal has successfully developed a number
of similar commercial and technical partnerships across the world
but this represents the Club's first significant financial services
partnership in the Africa continent. ''This partnership with UBA
represents an exciting opportunity for us. We are aware that Arsenal
has an exceptionally strong following in Africa and we look forward
to working with the bank in the development of financial services
and football at grassroots level.
The partnership will enable us to develop a
closer affiliation with our supporters and give many fans the opportunity
to visit Emirates Stadium, receive Arsenal merchandise and win shirts
signed by our first team squad. UBA and Arsenal are also committed
to renovating pitches across West Africa. Initially twelve pitches
in Nigeria will be laid with artificial surfaces providing a durable
and lasting facility for local players and we'll also provide local
support with visits to the region by our community coaches”
said Adrian Ford, Commercial Director at Arsenal.
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Wema
Bank Divests Shares  |
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The board of directors
of Wema Bank Plc has resolved to divest its holdings from Great
Nigeria Insurance (NGI), as it sold 515.7 million shares of
the bank in the company to the investing public.
Out of the shares offered for sale, 21 million units were sold
in form of call over under the leading of the director general
of the Nigerian Stock Exchange (NSE), Prof. Ndi Okereke-Onyuike.
130 million shares were originally allotted to the stockbrokers
of Wema Bank Plc (Independent Securities Limited) but out of
the units, 21 million was to be resold due to one reason or
the other. The 21 million units were referred to the stockbroking
firms who did not bid for the units earlier offered to the general
investing public. |
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Hitherto,
Wema Bank Plc was holding a total of 80 per cent shares structure
of GNI, which the Apex Bank considers to be in contrary with the laid
down rule.
Director General of the NSE said during the divestment that Wema Bank
was misled into buying such number of shares.
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Access
Bank acquires stakes in foreign companies  |
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Nigeria's
Access Bank has acquired a majority stake in three foreign-based
African financial institutions in a bid to become a bigger regional
player, the Nigerian bank has said.
Access Bank has bought a 90 per cent equity stake in Banque Privee
du Congo and 75 per cent of Rwanda's Bancor Bank. It has also acquired
88 per cent in Omnifinance Bank of Ivory Coast through a combination
of a share purchase and an injection of fresh funds that raised
the Ivorian bank's capital base to more than $20 million, the Nigerian
bank said in a statement.Access Bank did not however, give a value
for the deals.
Nigerian banks have seen rapid growth in the last three years after
a financial sector reform in 2005 that cut the number of institutions
to 25 from 89.
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Access Bank
said the takeover of Omnifinance will provide a platform to extend
its network in Franco-phone West Africa and help it complete its
coverage of the region's two money zones.
The acquisition of Rwanda's No. 4 bank will enable
Access Bank to grow its market share in that country and expand
into other East African countries such as Tanzania, Uganda and Kenya,
while the takeover of the Congolese bank will facilitate its entry
into Central Africa, the bank said in the statement.
The new deals take to six the number of Access bank's
foreign acquisitions.The Bank of Zambia said recently that it had
issued a banking license to Access Bank, which has pledged to invest
an initial $7.5 million in the Southern African country.
“We are impressed at the contributions of stakeholders
towards the smooth integration of each bank,” Access group
managing director Aigboje Aig-Imoukhuede said in the statement.
Access Bank's move to East Africa follows that of
Ecobank which recently acquired EABS Bank in Kenya and another Bank
in Rwanda. Ecobank is also pursuing acquisitions or new licenses
in Uganda and Tanzania. |
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