Ecobank Transnational Incorporated (ETI) Plc has notified holders of the preference shares of the defunct Oceanic Bank International Plc to convert their preference shares to ordinary shares within the next four working days.
The conversion of the preference shares is one of the previously agreed resolutions upon the acquisition of Oceanic Bank International by ETI. It should be recalled that by a resolution passed on September 14, 2011, the board of directors of ETI had approved the acquisition of Oceanic Bank.
The terms of conversion of preference shares were recommended by the board of Oceanic Bank and approved by shareholders of Oceanic Bank shareholders and were included in the scheme of arrangement documents for the acquisition.
According to the terms of conversion, 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. Each preference share, upon conversion, shall convert into 0.76923 ordinary share.
“You may convert your preference shares up to Monday October 31, 2016. After the said date, you will not be able to convert your preference shares anymore,” Ecobank stated in a regulatory filing issued at the company’s headquarters in Lome, Togo.
ETI had in December 2011 consummated its acquisition of Oceanic Bank International with the listing on the Nigerian Stock Exchange (NSE) of about 2.49 billion shares issued to acquire the bank, paving way for shareholders of defunct Oceanic Bank to trade on their investments.
The listing had increased ETI’s outstanding shares from 9.87 billion shares to 12.36 billion shares while market capitalisation of the bank-holding company rose from N102.59 billion to N125.48 billion.