ETI Announces Conversion Of Preference Shares To Ordinary Shares … Approves Acquisition Of Oceanic Bank

Ecobank Transnational Incorporated (ETI) has notified the three stock exchanges, Nigerian Stock Exchange (NSE), the Ghana Stock Exchange in Accra and the West Africa Stock Exchange (BRVM) in Abidjan on which ETI is listed that holders of 819.42 million preference shares have indicated their intention to convert their preference shares into ordinary shares.
The company in a release on the NSE website, yesterday said, once the requisite approvals are obtained, these preferences shares will result in 630.33 million ETI ordinary shares at an implied conversion price of N21.32 per new ordinary share.
“By a resolution passed on the September 14, 2011, the ETI Board of Directors approved the acquisition of Oceanic Bank International Plc (Oceanic). In line with the terms on conversion of preference shares recommended to Oceanic shareholders by the Oceanic board, as stated in the scheme of arrangement documents, and approved by Oceanic shareholders, preference shareholders had the right, exercisable at any time between the third anniversary of the issue date and the fifth anniversary of this date, to convert their preference shares into ordinary shares in the company at the rate of one preference share to 0.76923 ordinary share.
“Preference shareholders, therefore, had the right to convert their preference shares up to October 31, 2016. Out of an outstanding of 1.03 billion preference shares, as at the end of December 2015, the holders of 819.42 million preference shares exercised their right to convert their preference shares into ordinary shares in the company,” it stated.
It added that Qatar National Bank (QNB), one of ETI’s major shareholders, with 732.28 million preference shares, was among the holders that exercised their conversion option.
The group chief executive officer of ETI, Ade Ayeyemi noted that, “We appreciate the trust and confidence that the preference shareholders, particularly QNB, have in Ecobank. With the support of all our shareholders, we shall continue to provide the best quality banking services to our numerous clients across the largest banking network in Africa.”
He pointed out that the total ETI shares will increase to 24.73 billion ordinary shares upon conversion, saying the company will take all necessary steps to get the shares converted, issued and listed on the three stock exchanges on which the company is listed.

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