South Africa’s Standard Bank has bought control of IBTC Chartered Bank, it’s adviser said on Tuesday, in the first foreign takeover of a Nigerian bank since a sector reform in 2005.
Standard Bank, Africa’s top banking group by assets, had already secured a 33% stake in an agreed purchase last September and offered $400-million for a further 17% in a tender offer that closed on Monday night.
”We have more than we require so technically it is a done deal,” said Godwin Obaseki, managing director of Afrinvest brokers, who advised Standard Bank on the offer.
Nigeria’s banks have grown dramatically over the past 18 months since the end of a major consolidation process that saw 89 banks merge into 25 new groups.
Several banks have raised billions of dollars in new capital, seen their share prices soar in response to triple-digit profit growth and attracted a great deal of foreign interest.
However, the central bank has rejected foreign takeover advances for the largest banks in the hope of nurturing a home-grown financial sector.
The 15th largest bank in Nigeria by assets, the takeover will propel IBTC into Nigeria’s top 10, Afrinvest said in a recent note.
The bank hopes to build on its investment banking expertise and aims to attract business from South African investors in Nigeria’s fast-growing economy.
Standard Bank raised its offer to 16 naira per share from 11,74 naira in July after shareholders complained that the price was too low. Some shareholders complained that even the new price was not high enough given the strength of banking stocks over the past few months.
IBTC shares were suspended at 11 naira per share in March when the takeover was announced.
Standard Bank extended its offer by a week and went on a last-minute marketing spree to ensure it received the additional 3,1-billion shares required to secure the majority stake. — Reuters