Intercontinental Bank Recapitalisation On Course -GMD

Following yesterday’s vacation of the High Court’s injunction on the Memorandum of Understanding (MOU) between Access Bank and Intercontinental Bank for a business combination, the Management of Intercontinental Bank has assured that it would speedily conclude its recapitalisation programme ahead of Central Bank of Nigeria’s (CBN) deadline in September, 2011.

Speaking with a cross section of Judicial Correspondents on the outcome of the court case, the Group Managing Director/Chief Executive (GMD/CE) of the bank, Mr. Mahmoud Lai Alabi stated that the positive court ruling would aid the Bank to fastrack its recapitalisation plans which has reached advanced stage of conclusion.

Mr Alabi noted that the recapitalisation was in the interest of all stakeholders, particularly Shareholders, customers, staff, banking industry and the economy in particular.

The bank’s chief urged customers of the bank to continue to transact their business with the bank, noting that there is a ray of light at the end of the tunnel.

A Federal High Court sitting in Lagos, Southwest Nigeria, yesterday dismissed the suit filed by the former CEO of the Intercontinental Bank, Dr. Erastus Akingbola and one of the former directors of the bank, Bayo Dada, challenging the planned sale of the bank by the Central Bank of Nigeria to Access Bank.

In his ruling, Justice Okechukwu Okeke, who presided over the issue, said the CBN had enough powers to supervise banking operations in accordance with section 48 of BOFIA.

He also said the CBN has powers over who becomes the director of any bank.

In his words: “the CBN can validly remove and appoint a bank director.”

Justice Okeke further said the suit is not only belated, it is an abuse of court process.

Shortly after the ruling, the Group Managing Director of the bank, Mr. Layi Mahmud Alabi said the coast is now clear for the bank’s recapitalisation before the CBN deadline.

He further said it was the best time to move the bank to a greater height.

—Akin Kuponiyi