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Acquisition of Inland Bank boosts GTB capital base to N40bn
Goddy Egene
The acquisition of Inland Bank Plc is expected to boost the capital base of Guaranty Trust Bank Plc to over N40 billion. Prior to the acquisition GTB already had a capital base of N34 billion, while Inland Bank had N3.4 billion capitalisation. Officials of GTB said that as a result of its take over of Inland Bank, GTB�s net assets (capital) would climb up to the N40 billion mark by the end of the year
The Memorandum of Understanding between Guaranty Trust Bank Plc and Inland Bank Plc for the acquisition was formally signed on Thursday in Abuja.
Officials of both banks were said to have informed the Central Bank of Nigeria and the Securities and Exchange Commission of the development and they are expected to meet with authorities of the Nigerian Stock Exchange on Friday. Both banks are listed on the NSE.
Speaking on the acquisition, the Managing Director of GTB, Mr. Tayo Aderinokun, said, �This is a good fit. We are delighted as this acquisition gives us deeper access into several areas of the market and allows us to continue to provide GTB�s superior quality service to a broader spectrum of the market.�
With this acquisition, GTB�s nationwide branch network will grow to 94 as it absorbs all the 44 branches of Inland Bank, which got listed on the NSE on June 16, 1993, five years after it was licensed and incorporated as a commercial bank in 1988.
Analysts note that with this �cordial acquisition� of Inland Bank, GTB is gradually becoming a truly national bank in character. They contended that this might just be the beginning of several other acquisitions by GTB, which is described as a strong and solid institution with one of the most forward looking management teams in the nation�s financial services sector.
The bank maintains a unique record of being the only Nigerian bank that pays dividends to its shareholders twice in a year.
The Punch, Friday October 15, 2004
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