ADVERTISEMENT
  • The Membership Club
  • PT Hausa
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
Wednesday, January 20, 2021
Premium Times Nigeria
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
Premium Times Nigeria
BUA Group Ad BUA Group Ad BUA Group Ad
ADVERTISEMENT
Shareholders Approve Sterling Bank, ETB Merger

Sterling-Bank-Plc-1

Shareholders Approve Sterling Bank, ETB Merger

byPremium Times
September 30, 2011
3 min read

Shareholders of Sterling Bank Plc and Equitorial Trust Bank (ETB) Limited have approved the merger of the two banks, paving the way for Sterling Bank to assume all assets and liabilities of ETB and becoming one of the biggest banks in Nigeria.

At the separate extra-ordinary general meeting (EGM) of the banks in Lagos, shareholders overwhelmingly supported the business combination describing it as a fair deal that would benefit all stakeholders of the bank, especially shareholders who envisaged better returns.

With the approval, Sterling Bank would issue two ordinary shares of 50 kobo each in exchange for one ordinary share of N1 each of ETB. This implies an exchange ratio of two shares for two shares exchange ratio where ETB’s share is subdivided into 50 kobo nominal value.

Speaking at the EGM, Chairman, Sterling Bank, Dr. Suleiman Adegunwa, said the business combination would further strengthen Sterling Bank into a formidable financial institution wider branch network and strong retail franchise.

According to him, given the evident common values of both banks including excellence and professionalism as well as other numerous synergies, the merger would maximize values for the customers and shareholders of both banks.

“We also envisage that the emergent Sterling Bank from the merger would be a market leader in service delivery in all locations with branches well situated in metropolitan centres in Nigeria with attractive demographic characteristics,” Adegunwa said.

Explaining further the benefits of the merger, Group Managing Director, Sterling Bank Plc, Mr. Yemi Adeola, said the bank expects to increase its earnings, reduce costs and leverage on the synergies from the two banks to consolidate its market share.

He outlined that with the merger, Sterling Bank would have opportunity to become a major player in corporate banking and other services, which would strengthen Sterling Bank’s traditional strengths in structured and trade finance, cash management and treasury.

He pointed out that the merger would lead to economies of scale that would lead to reduction in operating while simultaneously widening the market share of the bank and market penetration, providing opportunities for increased revenues.

RelatedNews

CBN okays Sterling Bank’s move to restructure as Holding Company

Ex-top banker, Dauda Lawal, Fires Back At Magu, Writes Justice Salami Panel

Digital Disruption: How Nigerian capital market leverages technology to battle Covid-19 challenges

CBN-led coalition to tackle coronavirus raises N15 billion — Official

“With this merger, we are laying the foundation for future earnings growth and better financial performance. We expect to increase earnings, cut costs and significantly build shareholder value,” Adeola said.

On concerns about the fate of employees and integration of the two banks, Adeola assured that Sterling Bank would not discriminate against any employee of the merging bank citing part of the scheme of merger which indicates that Sterling Bank would absorb all employees and place them on commensurate remunerations.

He noted that having successfully integrated operations of five banks into Sterling Bank in the previous merger, the bank is better positioned to seamlessly integrate the operations and staff of ETB to accelerate the growth of the surviving bank.

Dangote adbanner 728x90_2 (1)

He assured shareholders that the merger was well thought through by the bank and was without pressure from any quarter adding that the bank did many due diligences on ETB to ascertain its true value.

He pointed out that apart from acquiring the bank without any negative equity funds, having been recapitalized by the Asset Management Corporation of Nigeria (AMCON), Sterling Bank would get new cash of N8.5 billion from ETB while there are also provisions to protect the bank from any undisclosed material information.

Shareholders who spoke at the well-attended meeting commended the board and management of the bank expressing optimism that there would be better returns to shareholders.

President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, said the merger with ETB would add value to all stakeholders given the business interests of core shareholders in ETB.

President, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, said shareholders were supporting the merger because it was not an imposition.
“We have given ETB a fair deal when you consider the exchange ratios for other such deals, especially if you consider that ETB is not a quoted bank,” Okezie said.

He said he was confident that the management of Sterling Bank would turn the merger into appreciable values to shareholders describing the Group Managing Director of Sterling Bank as a thoroughbred who knows his onions in the financial services industry.
National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, also endorsed the business combination assuring that shareholders would always support the bank.

ADVERTISEMENT

Brigadier Anthony Ikwe (rtd), who spoke on behalf of Zonal Shareholders Association, congratulated the board and management of the bank.

President, Shareholders United Front (SUF), Mr. Gbenga Idowu, also commended the board and management of the bank noting that the excellent management culture at the bank would enable it to maximize values from the merger.

With the merger, shareholders of ETB including AMCON would assume 20 per cent stake in Sterling Bank Plc, consisting of 10 per cent equity stake each for existing shareholders of ETB and AMCON.ETB would also nominate a director unto the board of Sterling Bank.

At the ETB’s EGM, Chairman, Equitorial Trust Bank (ETB) Limited, said the merger with Sterling Bank was an attractive combination for all stakeholders of ETB.

According to him, customers of ETB would benefit from a wider and better-integrated array of services and technologies; employees would enjoy the advantage and opportunities of being a part of a larger and stronger company while shareholders would have the opportunity to continue to participate in the success of a bigger enterprise.

He said the board of ETB considered the exchange ratio and terms of the business combination as fair deal noting that the merger have staved off possible liquidation and enabled ETB to achieve corporate renewal.

THE WILL

  • WhatsApp
  • Tweet
  • Email
  • Print
  • Telegram
  • More
  • Share on Tumblr
  • Pocket

Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


TEXT AD: To advertise here . Call Willie +2347088095401...


JOIN THE CONVERSATION

  • Disqus (0)
premiumtimes



PT Mag Campaign AD

Previous Post

Federal government to establish construction bank

Next Post

Kindle Fire May Force Android Tablet Makers To Cut Prices

Premium Times

Premium Times

More News

Former chairperson of the defunct Pension Reform Task Team (PRTT), Abulrasheed Maina

EFCC urges court not to grant Maina fresh bail

January 20, 2021
Nigerian Police on patrol

Police nab suspected killers of immigration officer, 6-year-old girl

January 20, 2021
Rivers state Governor Nyesom Wike [PHOTO CREDIT: @GovWike]

Wike, unwilling to pay Rivers pensioners, pledges N500 million to Sokoto

January 20, 2021
COURT symbol used to illustrate the story.

Court remands dealers charged with inscribing fake SON mark on adulterated engine oil

January 20, 2021
COVID-19 vaccine vials [PHOTO CREDIT: BioWorld]

COVID-19: AU vaccine plan proposes up to $10 per dose for Nigeria, others

January 20, 2021
U.S president Joe Biden sworn-in. [PHOTO CREDIT: Twitter account of David Axelrod]

U.S. Presidency: Biden, Harris sworn in

January 20, 2021
Next Post

Kindle Fire May Force Android Tablet Makers To Cut Prices

volkswagen-cars

Suzuki hands Volkswagen ultimatum to retract claim

Discussion about this post

Search

#EndSARS: Latest Updates




Polaris Bank


JAIZ Ad


NITDA Ad




Advertisement






netherland biz school Advert

Zenith Advert

Heritage Advert
ADVERTISEMENT

Our Digital Network

  • PT Hausa
  • Election Centre
  • Human Trafficking Investigation
  • Centre for Investigative Journalism
  • National Conference
  • Press Attack Tracker
  • PT Academy
  • Dubawa
  • LeaksNG
  • Campus Reporter

Resources

  • Oil & Gas Facts
  • List of Universities in Nigeria
  • LIST: Federal Unity Colleges in Nigeria
  • NYSC Orientation Camps Address Nationwide
  • Nigeria’s Federal/States’ Budgets since 2005
  • Malabu Scandal Thread
  • World Cup 2018
  • Panama Papers Game
  • Our Digital Network
  • About Us
  • Resources
  • Projects
  • Data & Infographics
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

No Result
View All Result
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Panama Papers
    • Paradise Papers
    • Parliament Watch
    • AGAHRIN
  • Opinion
  • PT Hausa
  • The Membership Club
  • Dubawa
    • Dubawa NG
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
  • Digital Store
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

Our website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.