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Access Bank extends public offer
By Mojeed Jamiu
Finance
Editor and
Esan Sunday
Snr
Finance Correspondent
Access Bank has
fulfilled the prediction of analysts by extending its public offer by another
five days to Friday, in the face of rapid take up of the shares.
This was confirmed at
the weekend, during which period Central Bank of Nigeria (CBN) Governor Charles
Soludo explained the rationale behind the reforms going on in the banking
industry and the pruning of the departments in the apex bank from 23 to 17,
announced last week.
He spoke at the annual
dinner of the Chartered Institute of Bankers of Nigeria (CIBN) where Chartered
Bank was voted the bank with the highest investment in real sector financing
in 2004.
Soludo lauded the
management and staff of Chartered Bank and urged them not to rest on their oars
in the development of the real sector. He said until the productive sector is
properly developed the nation will continue to groan under the burden of
poverty.
Since the Bankers
Committee asked banks to set aside 10 per cent of their profit before tax to
fund the sector, Chartered Bank has ring-fenced a cumulative N1.4 billion. It
reserved N690.4 million in 2004, N460.2 million (2003) and N245.9 million
(2002).
Soludo gave the
assurance that the reform programme was not introduce to punish the banking
industry but rather to promote and fortify it for global competition.
"The agenda is a
pre-emptive and proactive measure to prevent an imminent systemic crisis and
collapse of the banking industry, and permanently stop the boom and burst
cycles which have characterised the history of our banking industry”, he
said.
For the CBN to be
abreast of its responsibilities and adequately supervise banking institutions,
he explained, it is currently undergoing restructuring to make it more
efficient, effective, focused and proactive.
On the extension of
Access Bank’s offer, a source at the bank confirmed at the weekend that
the need to extend it beyond November 8 is for the bank to sell three billion
ordinary shares of 50 kobo each at a market price of N2.90.
Last Thursday, market
analysts had predicted that the rush for the bank’s shares could force it
to extend the offer so as to meet the demands of several investors.
The sale began on
October 11 with a significant investment by Aliko Dangote, President of Dangote
Group, who said the bank has shown total commitment to his business and brought
its excellent skills, technology, professionalism and strong international
contacts to contribute to the growth of the Dangote Group.
At the bank’s
investors’ forum held in Lagos last month, Dangote Group Managing
Director Knut Ulumoen praised the bank’s team for its commitment to
standards in the financial system and urged other investors to buy the shares .
Dangote's investment
in Access Bank is a strong signal to the public that its public offer is
"an offer you can't refuse", a stockbroker observed at the
investors’ forum.
The bank has recorded
tremendous achievements over the past two years, since the coming of the new
management team led by Aig Aig-lmoukhuede as Managing Director and Chief
Executive Officer and Herbert Wigwe as his Deputy.
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