Standard Bank in Nigeria merger

JOHANNESBURG – Africa’s top banking group by assets, Standard Bank , has received approval to merge its Stanbic Nigeria unit with IBTC Chartered Bank Plc.

Standard Bank said it had increased its offer price to 16 naira (US$0,12) per share from 11,74 naira per IBTC share valuing the offer at US$400 million. Coronation portfolio manager Neville Chester said while Nigeria was an integral element to the group’s pan African plans, the offer increase raised some concern.In terms of the proposed transaction, Standard Bank said it would merge Stanbic Nigeria with IBTC in exchange for 6,25 billion IBTC shares.Standard Bank spokeswoman Kim Howard said the reason behind the group’s decision to up its offer was the performance of banking stocks on the Nigerian Stock Exchange from March to early July.Standard Bank first revealed the merger talks in September.IBTC Chartered – a medium-sized bank with an emphasis on investment banking – has total assets of US$1,1 billion and a network of 56 branches across Nigeria.Nampa-ReutersCoronation portfolio manager Neville Chester said while Nigeria was an integral element to the group’s pan African plans, the offer increase raised some concern.In terms of the proposed transaction, Standard Bank said it would merge Stanbic Nigeria with IBTC in exchange for 6,25 billion IBTC shares.Standard Bank spokeswoman Kim Howard said the reason behind the group’s decision to up its offer was the performance of banking stocks on the Nigerian Stock Exchange from March to early July.Standard Bank first revealed the merger talks in September.IBTC Chartered – a medium-sized bank with an emphasis on investment banking – has total assets of US$1,1 billion and a network of 56 branches across Nigeria.Nampa-Reuters