National Bank of Nigeria Limited is to raise fresh funds from existing shareholders through Rights Issue as part of its recapitalisation plan.
According to a statement from the Managing Director, Mr. Kola Ayeye, the Board of Directors at its last meeting had already passed a resolution to increase the bank�s capital base to N7.5 billion to create room for the right issue.
He added that the bank would also leverage on the disposal of excess physical assets running into billions of naira to get additional funds.
Besides, Ayeye said that talks were at an advanced stage with three other banks that have indicated interest in merging with National Bank, stating that all parties are close to signing a Memorandum of Understanding soon.
According to him, National Bank�s consistent financial performance has made it an attractive merger partner to several other banks, citing the significant increases in profit in the last financial year as pointers to this.
The bank�s profit before tax increased by over 200 per cent to N379 million, while profit after tax increased by over 470 per cent to N279 million.
Underscoring the commitment of all stakeholders to the attainment of the N25 billion goal, Ayeye said, �We are mindful of the significant position Nationalbank occupies in the historical landscape of the Nigerian financial sector. The shareholders, board and management are thus irrevocably committed to ensuring that Nationalbank emerges from the consolidation era as a stronger, more effective and major player.�
Speaking in the same vein recently, Governor Rasheed Ladoja of Oyo State said, �One thing I can assure you is that Nationalbank will not fail to meet the recapitalisation target, we will ensure that it meets the N25 billion target before next year� adding �Nationalbank is very strong, it has a lot of assets not only in Nigeria, but also abroad.�
Oyo State along with. Ogun, Ondo, Ekiti and Osun states are owners of the Odu�a Investment Company, which is a major shareholder in Nationalbank.
