Bloomberg News

Ecobank Transnational Heads for 17-Month Low on Stock Buy Plans

November 23, 2011

Nov. 23 (Bloomberg)-- Ecobank Transnational Inc., a Lome, Togo-based lender, headed for a 17-month low after saying it will buy the rest of its Nigerian unit once Ecobank Nigeria Plc finishes merging with Oceanic Bank International Plc.

The stock lost 30 kobo, or 2.7 percent, to 10.7 naira by 1:26 p.m. in Lagos. A close at this price will be the lowest since June 2009.

Ecobank Nigeria Plc will be delisted from the Nigerian Stock Exchange after it merges with Oceanic, a Nigerian lender that was bailed out by the central bank in 2009, the companies said in a statement to the stock exchange today. Ecobank will offer 1 share for every 5.16 Ecobank Nigeria shares, it said.

The bank’s shares have fallen 32 percent this year, compared with a 20 percent decline in the Nigerian Stock Exchange All-Share Index over the same period.

--Editors: Linda Shen, Dulue Mbachu

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

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


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