LAGOS— FIRST Atlantic Bank Plc, Manny Bank Plc, Guardian Express Bank Plc, and Assurance Bank Plc yesterday signed a memorandum of understanding (MOU) to consolidate into a world class bank named Astrabank Plc.
Speaking on behalf of the four banks, Chairman Guardian Express Bank Plc, Ambassador Moses Ihonde, said the decision of the constituents banks to merge was “driven by a shared vision to form a world class bank that will be a key player in all the major financial centres of the world. Our group has therefore set out to build a mega bank that will be among the ‘Top Three’ banks in Nigeria within the next three years. Our vision is to create a strong international bank that will assist in bridging commercial transactions throughout Africa and beyond.
“With a combined network of over 120 branches, total assets base of N71 billion, total deposit base of N48billion and total shareholders’ funds of N11 billion, our consortium currently ranks among the top eight banks in Nigeria. Our member banks have finalised arrangements to raise additional capital through a combination of rights issue and private placements. We are, therefore, confident that Astrabank will attain the minimum N25billion capital requirement by March 2005.
“As soon as the merger is consummated, we intend to raise additional N15 billion through public offers in order to further increase the capital base to N40 billion. The listing of the shares of Astrabank on the Nigerian Stock Exchange will open the benefits of ownership of the proposed institution to all Nigerians.
“We will also pursue acquisition of some banks in the very immediate term to increase our business reach and capabilities; while membership of our consortium will remain open to other banks that may be willing to join, in so far as they share our vision and values and will further strengthen the consortium. Ultimately, we target N50 billion in capital base.
“Astrabank, with interests in mortgage banking, insurance, asset management, stock broking and human capital development, will immediately be a one-stop financial supermarket, meeting the financial services needs of Nigerians and members of the international community.
“With branches in all the geopolitical zones of the country and presence in all the clearing centres, our mega bank will immediately be seeking an appointment as a settlement bank from the Central Bank of Nigeria. Astrabank will then be positioned to provide the most efficient banking services in Nigeria through a combination of quality human capital, top of the range technology and adequate capital base.
“The composition of the consortium, their profiles and pedigree make the achievement of our vision easily realisable. It is a well-known fact in the industry that members of the consortium pioneered the deployment of e-banking services and payment of COT to current account holders (COT-plus) in the Nigerian banking environment,” he said
In addition to strong financial base and enviable pool of professional expertise, Astrabank is privileged to have a rare assembly of very distinguished Nigerians who are currently on the boards of the member banks. Among these are Chief Leo Stan Ekeh of Zinox Technologies; Alhaji Ahmad S. Mayaki, former deputy governor of the Central Bank of Nigeria; Olorogun O’tega Emerhor, a banker and Group CEO of the Standard Alliance Group; Mr Pat Bassey, a financial management consultant; Ambassador Moses Ihonde, a career diplomat and former President of the Nigerian-American Chamber of Commerce; Dr Cosmas Maduka, entrepreneur and chairman of Coscharis Group; Chief Steven Lawani, seasoned administrator and chairman of the Aluminum Smelting Company of Nigeria (ALSCON) and Chief Augustine llodibe, eminent industrialist and chairman of Ekene Dili Chukwu Group of Companies.
