Mergers, Acquisitions: SEC Sets Up Task Force
By Uche Obike
The Director General of the Securities and Exchange Commission (SEC), Mallam Suleyman Ndanusa, disclosed at the weekend that the Commission had set up a task force to handle the flurry of applications expected for either public offerings, mergers or acquisitions.
Ndanusa who addressed financial journalists on issues bordering on the activities of the capital market in the past three months, disclosed that the Commission had long before now made known its support for the new minimum capital base policy.
Ndanusa announced that a capacity building programme developed by the Commission involving both the staff of the SEC and the CBN had already started.
He explained that the purpose was to equip the relevant staff of the two institutions with the contemporary global trends and techniques in the crucial area of mergers and acquisitions especial of banks.
Ndanusa assured that "we will on our part ensure that equity, thoroughness, professionalism and best practice are observed in the capital market towards the implementation of this policy."
He also announced that the Commission has reduced by 50 per cent the fees payable in mergers, acquisitions and registration of securities of the affected banks.
He explained further that "this package of incentives is available to only banks for the period of new capital base implementation."
The Commission is anticipating that with about 90 licensed banks in the country and about 24 listed on the Exchange, the battle to meet the new minimum capital base through through public offering or merger and acquisitions will be intense.
"Our support is predicated on the fact that the capital base of all financial institutions especially banks must measure up to the credit, market and operational risks that their of activities require, if they are to become credible global players," he said.
He declared that as signatories to the original Basel 1 and with Nigeria's acceptance in principle to the new Basel 2 accord, the CBN decision is therefore consistent with the spirit of these international protocols, as this will ensure the global competitiveness of our banks."
In a bid to demonstrate support for the Federal Government on-going banking reforms in the country, the Commission disclosed its preparedness to tackle the challenges posed by the new.
Ndanusa disclosed that the apex regulator of the capital market had commenced the process of repositioning in order to tackle challenges in the on-going banking reforms following the Central Bank of Nigeria (CBN) directives on N25 billion capitalisation for banks.
|
