‘Convert preference shares now or lose it’ – ETI advises

The management of the Ecobank Transnational Incorporated (ETI) yesterday issued a notice to the defunct Oceanic Bank plc shareholders, to convert their preference shares to Ordinary Shares by Monday October 31, 2016, saying that after the said date, such shareholders will not be able to convert the preference shares anymore.

Business247 News Online recalls that 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”.

ETI management then said that each preference share, upon conversion, will amount to 0.76923 Ordinary Shares.

In view of this, the bank has, therefore, informed Oceanic Bank’ shareholders that the conversion of 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.

It will be recalled that on October 25, 2011,  Ecobank Transnational Incorporation (ETI), formally acquired the 1000 per cent 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.