INTERCONTINENTAL Bank has completed the allotment of N3 billion ordinary shares to the Asset Management Corporation of Nigeria and N15 billion for Project Star Investment Limited, which is the banks special purpose vehicle.Speaking during the bank's completion board meeting, the Managing Director of the bank, Mahmud Lai Alabi, said that the existing shareholders would get 10 per cent share of the new bank.According to him, AMCON would bring in accumulated amount, to reduce the bank's deficit to zero.'This is over N250 billion deficit, then the meeting will enable AMCON bring the accumulating amount by offering them the shares in exchange of the bond they are going to issue to the bank,' he said.The Chairman of the bank, Raymond Obieri, said 'this completion board meeting is to formally endorse the placement of the shares to the strategic investor, who is now going to invest in the bank, after the court ordered meeting and we need the board approval for the completion board meeting so that is the process we first completed now. The amount of the shares being placed is three billion ordinary shares of 50 kobo each with AMCON 15 billion ordinary shares with project star investment limited.We have created a new vehicle which is project star investment by which we are going to own the shares of intercontinental under the scheme arrangement approved by the court ordered AGM, that is the way we can get the bank to assume this new identity and with the capital from AMCON and Access Bank, the bank will be very liquid'.Earlier at the occasion, Shareholders of the bank, at Court Ordered Meeting yesterday endorsed the bank's scheme of arrangement for capital reorganisation.The approval brings to a successful conclusion the planned merger or business combination with Access Bank Plc.In line with the section 106 of CAMA, the shareholders approved that the issued ordinary share capital of the bank be reduced from N9.5 billion comprising 18.9 billion ordinary shares of 50 kobo each to N1 billion comprising of two billion fully paid ordinary shares of 50 kobo each through the cancellation of the 5.05 billion shares which were purchased directly or indirectly with the funds of intercontinental bank.The approval also included pro rata cancellation of 11.8 billion ordinary shares of 50 kobo each in the share capital of the bank, such that the number of ordinary shares to be held by each existing shareholder in the capital of Intercontinental Bank subsequent to the cancellations be in the ratio of one for every seven ordinary shares previously held by such existing shareholder.The shareholders also endorsed that 3 billion ordinary shares of 50 kobo each shall be issued and allotted to the Asset Management Corporation of Nigeria (AMCON) via a placing, in consideration for the injection of the Financial Accommodation Amount andthat 15 billion ordinary shares of 50 kobo each shall be issued and allotted to PSI Limitedvia private placement, in consideration for the investment amount.Others include that, the share premium account be reduced from N147.7 billion to offset the negative retained earnings and that the shares of Intercontinental Bank be delisted from the daily official list of the Nigerian Stock Exchange.
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