FCMB, Finbank sign deal on merger

Category: Business Published on Saturday, 16 July 2011 06:00 Written by Kayode Ekundayo,Lagos Hits: 738

The parties are expected commence the process of a Scheme of Arrangement, which will be subjected to the approval of Finbank and FCMB shareholders, the Central Bank of Nigeria, the Securities and Exchange Commission, The Nigerian Stock Exchange and the Federal High Court

Early last week, Access Bank Plc And Intercontinental Bank Plc  signed similar deal. Access Bank in a notice said the deal would give effect to the transaction as contemplated in the Memorandum of Understanding (MOU). The Central Bank of Nigeria (CBN) has conveyed it’s no objection to the terms of the TIA and has granted both parties approval to implement the terms of the agreement. Furthermore, the parties will commence the process of a Scheme of Agreement, which will be subjected to Shareholder, Regulatory and Judiciary approvals.

Meanwhile, a turnover of 0.94 billion shares worth N7.58 billion in 26.528 deals was recorded this week, in contrast to a total of 1.68 billion shares valued at N12.7 billion exchanged last week in 29,688 deals. The Banking subsector was the most active during the week (measured by turnover volume); with 620.12 million shares worth N4.57 billion exchanged by investors in 14,800 deals. Volume in the Banking subsector was largely driven by activity in the shares of Guaranty Trust Bank Plc, Zenith Bank Plc, Access Bank Plc, and First Bank of Nigeria Plc.

Trading in the shares of the four banks accounted for 301 million shares, representing 48.61% and 32.14% of the subsector’s turnover and total volume traded during the week, respectively. The Insurance subsector, boosted by activity in the shares of Custodian And Allied Insurance Plc, Guaranty Trust Assurance Plc and Continental Re-Insurance Plc followed on the week’s activity chart with a subsector turnover of 130.67 million shares valued at N135.03 million in 1,483 deals. Last week, the Banking subsector led on the activity chart and was followed by the Insurance subsector.

The NSE All-Share Index depreciated by 477.89 points or 2% to close on Friday at 23,832.14 while the market capitalization of the 194 First -Tier equities decreased to N7.62 trillion. The NSE-30 Index depreciated by 22.52 points or 2.1% to close at 1,060.49.

Last week, ASI and NSE-30 Indices depreciated by 1.57% and 1.53%, respectively. All four sectorial indices depreciated during the week same as the preceding week. The NSE Food & Beverage Index depreciated by 17.58 points or 2.21% to close at 784.53, the NSE Banking Index depreciated by 17.35 points or 4.8% to close at 347.26, the NSE Insurance Index depreciated by 1.85 points or 1.15% to close at 158.20 and the NSE Oil & Gas Index depreciated by 5.26 points or 1.80% to close at 287.62

Also, 18 stocks appreciated in price during the week, lower than the 23 of the preceding week. Nigerian Breweries Plc led on the gainers’ table with a gain of N4.00 to close at N92.00 per share while Nestle Nigeria Plc followed with a gain of N1.99 to close at N402.00 per share. Other price gainers’ include Capital Hotel Plc - 1.20, Okomu Oil Palm Plc - 0.45, Costain (W.A) Plc - 0.23, UACN Property Development Co. Plc - 0.15, Guaranty Trust Assurance Plc - 0.12 ,   Prestige Assurance Co. Plc - 0.08, RT Briscoe (Nig) Plc - 0.08, Wema Bank Plc - 0.07

Similarly, 49 stocks depreciated in price during the week, lower than 51 of the preceding week. Chemical and Allied Products Plc led on the price losers’ table, dropping by N5.22 to close at N29.00 per share while Julius Berger Nigeria Plc followed with a loss of N2.71to close at N53.49 per share. Other price losers include Flour Mills of Nigeria Plc - 2.66, Larfarge WAPCO Plc - 2.35, PZ Cussons Nigeria Plc - 2.30, Unilever Nigeria Plc - 2.00, Oando Plc - 1.99, Guinness Nigeria Plc - 1.99, Cadbury Nigeria Plc - 1.50, Ashaka Cement Plc - 1.32.