Home Finance Ecobank takes over Oceanic bank

Ecobank takes over Oceanic bank

by Business News Report

Ecobank Nigeria Pls on Monday formally took over the operations and management of Oceanic bank International Plc sequel to its injection of over N41 billion into the troubled bank. At the presentation of certificates of acquisition to Ecobank Transnational Incorporation (ETI) the Asset Management Corporation of Nigeria (AMCON), by the management of Oceanic bank by its group managing director, John Aboh, the chief executive officer of Ecobank Transnational Corporation (ETI),
Arnold Ekpe described the transactions as a very pleasant one. He said Oceanic bank would be run as a separate entity for the next 12 months when Oceanic would be fully integrated and fused into Ecobank’s operations

The shareholders of Oceanic bank had late last month at court ordered extra-ordinary meeting agreed with terms and condition of Ecobank Nigeria as strategic investor also resolved that 714,400,000 million ordinary shares of 50 kobo each be allotted to ETI while they also authorized the directors of the bank to issue 885,600,000 ordinary shares of 50 kobo easch to AMCON in consideration for the injection of N290.153 billion
Ecobank Transnational Incorporation (ETI) as part of the process got the nod of its shareholders recently to $3 billion, about N465 billion in equity for the purpose of strategic business transactions

According to Ekpe, the exercise was historic “This is historic moment for us . We have worked together several months with our advisers, consultants to put up the transaction for the interest of all stakeholders”, he said He said ETI through its parent company, Ecobank in Nigeria, the largest bank in Africa in term of geographical presence has acquire 100 per cent of Oceanic bank subsequent to that Oceanic bank would merge with Ecobank to create largest bank in Nigeria in term of branches, asset, customer base and
revenue base and profit.
“We believe this is the win-win opportunity for both institutions because it has been a transaction among friends. We know each other from previous transactions and the process has been very pleasant in working with the management and directors of Oceanic bank”, he said Ekpe said with the integration, ETI would be creating a more big institution with which are beneficial to both parties adding that before the end of the
year Oceanic bank will merge with ETI

He said the name, Oceanic bank International would still be used, because according to him Oceanic bank has a strong brand “ We will not change the name of Oceanic immediately. The name is very strong brand in Nigeria and I don’t think we will be that in hurry. In the medium term as far as the employees are concerns we will be looking for the best among them. We have had a lot experience in acquisitions in the last
five years, we have done 12 acquisitions”
On imminent changes in management, Ekpe said there would be some change “ As far as governance is concern, there will be some changes but any changes we are going to do will be done in due consultation with the board and management adding that shareholders of the banks should expect good returns on their investment

He said with presence in 35 countries in Africa, Ecobank would bring his
experience to bear in the areas of corporate governance, highest reporting
“The promise we can made to the shareholders is to run the bank very well in such a way that can make profit and also provide an attractive environment for the employees and to ensure governance of the institution obey the highest standards. We will impact all we can on the bank”, he said He said customers of each of the banks can now access their accounts from the banks The group managing director of Oceanic bank, John Aboh advises the workforce not to exercise any fear “My advice to the staff is fear not, focus on your work this is not a hostile takeover neither it is asset tripping everybody is expected to put in their best to ensure the growth of the combined institutions”, he said

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