Ecobank Announces Conversion of Preference Shares to Ordinary

By Modupe Gbadeyanka

Ecobank Transnational Incorporated (ETI), the parent company of Ecobank Group, has announced that holders of 819,424,548 preference shares have indicated their intention to convert their preference shares into ordinary shares.

In a statement issued on Monday, the firm said once the requisite approvals are obtained, the preferences shares would result in 630,325,909 ETI ordinary shares at an implied conversion price of N21.32 (21.32 Nigerian Naira) per new ordinary share.

It further said by a resolution passed on September 14, 2011, the ETI Board of Directors approved the acquisition of Oceanic Bank International Plc.

Explaining further, ETI said in line with the terms on conversion of preference shares recommended to Oceanic shareholders by the Oceanic board, as stated in the scheme of arrangement documents, and approved by Oceanic shareholders, preference shareholders had the right, exercisable at any time between the third anniversary of the issue date and the fifth anniversary of this date, to convert their preference shares into ordinary shares in the company at the rate of one preference share to 0.76923 ordinary share.

Preference shareholders, therefore, had the right to convert their preference shares up to Monday 31, 2016, the company said.

ETI noted that out of an outstanding of 1,031,515,911 preference shares, as at the end of December 2015, the holders of 819,424,548 preference shares exercised their right to convert their preference shares into ordinary shares in the company.

The statement said Qatar National Bank (QNB), one of ETI’s major shareholders, with 732,277,056 preference shares, was among the holders that exercised their conversion option.

ETI Group Chief Executive Officer, Mr Ade Ayeyemi noted that, “We appreciate the trust and confidence that the preference shareholders, particularly QNB, have in Ecobank. With the support of all our shareholders, we shall continue to provide the best quality banking services to our numerous clients across the largest banking network in Africa.”

With the latest development, the total ETI shares will increase to 24,730,354,443 ordinary shares upon conversion.

The statement disclosed ETI is taking all necessary steps to get the shares converted, issued and listed on the three stock exchanges on which the company is listed: the Nigeria Stock Exchange in Lagos, the Ghana Stock Exchange in Accra and the West Africa Stock Exchange (BRVM) in Abidjan.