The management of Ecobank Transnational Incorporated (ETI) yesterday issued a notice to shareholders of the defunct Oceanic Bank Plc, to convert their preference shares to ordinary shares before Monday October 31, 2016, warning that after the said date, such shareholders will not be able to convert the preference shares anymore.
Five years ago, precisely, on 14th September 2011, the management of ETI had notified the Nigerian Stock Exchange (NSE) by a resolution passed by its board of directors which was approved by the acquisition of Oceanic Bank International Plc that “The holders of the preference shares shall have right, exercisable at any time between the third anniversary of the issue date and the fifth anniversary thereof, to convert their preference shares into ordinary shares in the company.”
The bank added that each preference share, upon conversion, will convert into 0.76923 ordinary shares.
In view of this, ETI had informed Oceanic Bank shareholders’ that to convert their preference shares into ordinary shares may be done at any time between October 31, 2014 and October 31, 2016.
The shareholders of Oceanic Bank are expected to get one new ETI shares in exchange of 14 Oceanic Bank shares after reduction of the bank’s paid-up share capital.
However, the bank, prior to its earlier communication on this matter, has therefore said that shareholders may convert their preference shares up to Monday October 31, 2016, and after the said date may be unable to convert the preference shares anymore.
It would be recalled that on Oct 25, 2011, Ecobank Transnational Incorporation (ETI), formally acquired the 100 percent stake in Oceanic Bank International Plc, after fresh fund injection into the troubled financial institution.
The full merger of Oceanic Bank with Ecobank Nigeria, a member of ETI, was consummated before the end of that year.