Ecobank Nigeria on Monday December 05, 2011 issued a notice to shareholders seeking their approval to merge its operations with Oceanic Bank on December 22, 2011. This follows the 100.0 per cent acquisition of Oceanic Bank by its parent firm, ETI in September. Shareholders in the enlarged Ecobank would receive 1 share in ETI for every 5.16 Ecobank shares owned. ETI’s chief executive, Arnold Ekpe expects the pan-African bank to conclude merging the operations of its Nigerian unit with Oceanic Bank by the end of 2012. The merger sees Ecobank becoming the fifth largest Nigerian bank, from fourteenth a year ago.
The Nigerian equity market closed the week with a depreciation of 89bps in the benchmark NSE All-Share Index, as higher stable fixed income yields currently appear more attractive than equity market returns. FAAC inflows for the month of October were eventually credited to the money market, before trading commenced last week. The resulting boost in liquidity levels saw inter-bank rates fall by as much as 200bps on Monday.
Market rates are expected to gradually head back up this week, as funding for the inter-bank foreign exchange market, bond auctions and Treasury bill purchases mop up the excess liquidity from the market.
Demand for the Dollar at the official market last week stood at US$474.1m, 8.0 per cent less than the US$515.6bn demanded at both auctions in the previous week. The Naira traded above the N160.00/US$1.00 band at the inter-bank market throughout last week.
