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Business News of Tuesday, 18 October 2011

Source: myjoyonline

Access Bank ‘takes over’ Intercontinental Bank

Intercontinental Bank is now a subsidiary of Access Bank following the acquisition of 75% majority interest in Intercontinental by Access.

A statement issued by banks Monday, also announced the completion of the recapitalization of Intercontinental Bank, while a merger of the two banks is expected to be completed within the 2nd quarter of 2012.

Until the consummation of the merger, Intercontinental Bank will operate as a subsidiary of Access Bank and fulfill all obligations to customers and other stakeholders.

Intercontinental Bank’s new status “including all its assets, liabilities and undertakings,” has been in effect since Friday, October 14, with Access Bank’s Group Managing Director/CEO, Aigboje Aig Imoukhuede, assuming the chairmanship of the reconstituted board of directors of Intercontinental.

The combined effect of the restoration of Net Asset Value (NAV) to zero by the Asset Management Corporation of Nigeria (AMCON) and N50 billion or about $307,314,075 (at N162.70 per $1) capital injection by Access Bank is that Intercontinental Bank now operates as a well capitalized bank, with shareholders funds of N50 billion and Capital Adequacy Ratio (CAR) of 24%, well above the 10% regulatory threshold, noted the statement.

“We are also pleased to announce that change of control processes for Intercontinental's banking operations within Nigeria have been completed and we are working with host regulators to conclude change of control processes for its international banking subsidiaries.”

Other members of the reconstituted board of directors of Intercontinental Bank are Victor Etuokwu, Managing Director; Ojini Olaghere, Executive Director; Segun Ogbonnewo, Executive Director; Herbert Wigwe, Non-Executive Director; Taukeme Koroye, Non-Executive Director; Paul Usoro, Non-Executive Director and Obinna Nwosu, Non-Executive Director.