LAGOS—Indications emerged, yesterday, that banks rescued by the Central Bank of Nigeria (CBN) in 2009, may seek to list on the London Stock Exchange (LSE) to raise funds before the deadline set for them to recapitalise.
Mr. Ibukun Adebayo, LSE’s Head of Primary Markets for the Middle East and Africa, disclosed this in London.
Some of the eight banks that received funds from CBN were said to have contacted LSE about possible listings, Adebayo said.
The central bank has ordered the eight banks to boost their capital by September 30 or it will withdraw inter-bank guarantees, meaning they will face liquidation.
According to Adebayo, “Financial services in Nigeria is an area where we see increases in listings.”
He declined to say how many banks had approached LSE because the discussions are confidential.
The bailed-out lenders are Afribank Nigeria Plc , Bank PHB Plc , Equatorial Trust Bank Ltd., FinBank Plc , Intercontinental Bank Plc, Oceanic Bank International Plc, Spring Bank Plc and Union Bank of Nigeria Plc.
Oceanic Bank said it will meet the central bank’s deadline for completing its recapitalisation and has received “several expressions of interest,” spokeswoman Monye Mpho said.
Oceanic Bank will choose the bidder that offers the “best value,” she said.
But a court judgment in Lagos has stopped further discussions on the planned merger between Access Bank and Intercontinental, BankPHB, and that of Finbank.
Oceanic Bank slumped for the seventh day, losing 4.8 percent to 1.6 naira at 10:41 a.m. in Lagos. Union Bank dropped 4.9 percent to 2.5 naira. Oceanic Bank is yet to sign an accord with a potential investor after talks collapsed with First Bank of Nigeria Plc, the country’s third-biggest lender.
FinBank has signed an agreement to merge with First City Monument Bank Plc (FCMB), FCMB said on May 5. Union Bank said on March 23 it signed an agreement with African Capital Alliance under which the group will invest $750 million into the bank.
Access Bank Plc will merge with Intercontinental Bank, Access said on March 27. The LSE has 18 companies trading on its main market and 56 on its Alternative Investment Market that are incorporated or have operations in sub-Saharan Africa. Four African companies have global depositary receipts listed on the exchange, including Lagos-based lenders Diamond Bank Plc (DIAMONDB) and Guaranty Trust Bank Plc. (GUARANTY)
Comments are moderated. Please keep them clean and brief.
See more here:
Rescued banks seek London listing before deadline