NNB Bank Plans for N10bn Capital Base
Stories by Ayodele Aminu and Olugbuyiro Akinola
The Board of Directors of NNB International Bank, led by Mr. Felix Ohiwerei, has reached a decision to increase the bank's authorized share capital from the current N1.5 billion to N10 billion.
According to a Notice of Annual General Meeting, made available to THISDAY by the bank the shareholders of the bank, will during their 24th Annual General Meeting (AGM), slated for Monday September 27, 2004, pass a special resolution, "Empowering the Directors to increase the authorized share capital of the Bank to an amount up to N10 billion at such time or times as the Directors may deem fit"
The Directors are to raise this new capital by issuing "such number of new ordinary shares by way of Rights Issue and or fresh Public Issues in such proportion and for such consideration as may be required to attain the capitalization level that the Directors, in their discretion, deem adequate for the Bank to meet its own funding requirements.
The shareholders are also expected to pass a special resolution, "That subject to the approval of the regulatory authorities, the Directors be and are hereby authorized to take such steps as may be necessary, including initiating and negotiating a merger and or acquisition or any other business combination or arrangements with other Companies and or Institutions, whether foreign or local, for the purpose of complying with the recent directive by the regulatory authorities on the minimum capital base for banks by December 2005 and to appoint such professional parties as may be required".
The Managing Director of the bank, Mr. Okoh had earlier explained that the bank is mapping out its plan to meet the minimum capital base of N25billion in response to the new policy directive announced recently by Prof. Charles Soludo, the Governor of the Central Bank of Nigeria (CBN). He added that the Board of Directors is carefully considering a combination of options alliance with likeminded financial institutions both local and offshore, and a major recapitalization effort.
Mr. Alex Okoh, has assured investors, customers, regulatory authorities, and other stakeholders that the new NNB has been successfully repositioned to meet the challenges of the times as well as to improve its capacity for sustainable growth.
For the last two consecutive years, the bank has doubled both its Profit Before Tax and Profit After Tax, attesting to the successful completion of its restructuring and repositioning program, which began in August 2000.
NNB International Bank Plc (formerly known as New Nigeria Bank Plc) was sold in 2000 to private investors by the governments of Edo and Delta States. Both state governments have reduced their shareholding in the bank to 5% each. About 11,000 shareholders all over the federation currently hold 85% of the equity, while the remaining 5% is reserved for the staff of NNB International Bank.
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