Bloomberg News

Access Nigeria to Close Intercontinental Buy in October 2012

September 01, 2011

(Updates with comment from Access CEO in second paragraph.)

Sept. 1 (Bloomberg) -- Access Bank Plc of Nigeria will complete its acquisition of Intercontinental Bank Plc, a bailed- out lender, in October 2012, said Chief Executive Officer Aigboje Aig-Imoukhuede.

The banks will become a “single entity” then, he said today on a conference call from Lagos, the commercial capital. Intercontinental shareholders can currently sell their stock to Access Bank at 2.75 naira ($0.02) each, he said.

Intercontinental was among the eight lenders whose chief executives were fired by the Central Bank of Nigeria in 2009 after a lending crisis threatened to collapse some of the West African nation’s banks. The central bank bailed out the lenders with 620 billion naira and this year gave them a Sept. 30 deadline to recapitalize, or face liquidation or nationalization.

Access Bank’s shares rose 1.1 percent to 5.63 naira by the 2:30 p.m. close in Lagos. The stock has lost 41 percent this year, outpacing a 14 percent decrease in the Nigerian Stock Exchange All-Share Index. Shares of Intercontinental Bank have been placed on technical suspension by the bourse, which means that they can trade but the price cannot change.

--Editors: Emily Bowers, Antony Sguazzin.

To contact the reporter on this story: Vincent Nwanma in Lagos at vnwanma@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net


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