Business
FCMB, Finbank Sign Transaction Implementation Agreement
First City Monument Bank Plc (FCMB) and FinBank Plc have signed a Transaction Implementation Agreement (TIA) for the business combination of both financial institutions. This is further to the Memorandum of Understanding (MoU) signed in May this year.
Group Managing Director of FinBank, Mrs Suzanne Iroche, said: “We welcome this strategic investment, which will strengthen the financial position of the institution.” She went on to state, “I am positive the process will bring value to all stakeholders.”
The development represents a significant milestone in the recapitalisation process aimed at restoring confidence to the banking sector.
A joint statement issued by the two banks explained that the business combination would involve a scheme of arrangement, followed by a scheme of merger to be executed in accordance with the laws of the Federal Republic of Nigeria.
According to the statement, the combined bank will be a unique financial institution with proven corporate banking capabilities, strengthened commercial banking business and a robust platform for retail growth.
The statement also added, “the merged entity will also benefit from unique complementary transactional banking platforms and offerings, as well as, leverage capital, optimise synergies and drive shareholder value.”
The Group Managing Director of FCMB, Mr Ladi Balogun welcomed the signing, adding that the combination would “accelerate the attainment of the bank’s strategic and financial goals, while creating a more robust retail platform.”
With the signing of the TIA, FinBank and FCMB will now commence the process, which will be subject to the approval of the shareholders of both institutions, the CBN, the Securities and Exchange Commission, The Nigerian Stock Exchange and the Federal High Court.