The proposed merger of Stanbic Bank (Nigeria) Limited (“Stanbic Nigeria) and IBTC Chartered Bank Plc (“IBTC”) and the simultaneous Tender Offer, aimed at achieving a controlling interest in IBTC for Stanbic Africa Holdings Limited (“SAHL”), the parent company of Stanbic Nigeria, received a positive injection today.
At their separate Court ordered meetings, the shareholders of Stanbic Nigeria and IBTC approved the proposed merger, whereby Stanbic Nigeria would merge with IBTC in exchange for SAHL getting a 33.3% interest in the enlarged IBTC.
Although the forms submitted in response to the Tender Offer where SAHL offered to purchase IBTC shares from shareholders at N16 per share are still being collated and processed, the forms that had been processed at the closure of the Tender Offer at 5pm on 20 August 2007 confirm that sufficient IBTC shares have been deposited through the Tender Offer to allow SAHL to hold a 50.1% equity interest in the enlarged IBTC. A formal announcement of the result of the Tender Offer will be made once all the forms have been processed and necessary returns filed with the Securities & Exchange Commission.
The Tender Offer has resulted in a windfall of about N50 billion in the hands of IBTC shareholders and represents about US$400 million in foreign direct investment (FDI) by SAHL. IBTC shareholders who sold their shares in the Tender Offer will also get the dividend declared for the year ended 31 March 2007 on the shares they have sold. All IBTC shareholders can now benefit from the better prospects that the enlarged IBTC has to offer.
“We are very pleased with the way things have worked out. This is a further vote of confidence in favour of the financial sector consolidation in Nigeria. It is a compliment to the foresight of Nigeria's regulatory authorities to make the banking sector more transparent,” says Jacko Maree, Chief Executive Officer of Standard Bank Group the ultimate parent of Stanbic Nigeria and SAHL.
“We will now be in a position to introduce our expertise and financial muscle into the Nigerian market. Customers will have access to many new products from early 2008. The products will be rolled out on a phased basis,” he continued.
In the same vein, Atedo N. A. Peterside O O N, Chief Executive Officer of IBTC, said, “For Stanbic customers it will mean that they now have access to the IBTC branch network and a much greater presence in the market.”
“The investment banking operations of both banks are excellent and the combined team will be able to deliver excellent products and services to the corporate clients. Stanbic Nigeria also brings its large global markets trading expertise to IBTC customers,” Peterside added.
Craig Bond, Chief Executive of Standard Bank Africa, said his team is looking forward to working with IBTC. “In particular our growth targets mean that we will be looking at integrating the teams as fast as possible and then going to market to recruit further skilled staff.” he declared.
“This will not be a cost cutting exercise at all. We will be hiring more people and will be rolling out our extensive staff training programmes. Over time IBTC senior staff will attend our Global Leadership Centre in Johannesburg. Staff and leadership development is a key pillar to the Standard Bank business model,” Bond stated.
Maree was enthusiastic about growth opportunities in the Nigerian Banking sector and looked forward to working with the IBTC team.
The Tender Offer process, the first of its kind in Nigeria's capital market, commenced on July 23 and was extended to August 20, 2007.
