Monday, July 18, 2011

Finbank, FCMB sign merger deal

Finbank and First City Monument Bank (FCMB) said on Friday they had signed a merger agreement, paving the way for Finbank to recapitalise ahead of the central bank's September deadline.

Finbank was one of nine lenders rescued in a $4 billion bailout by the central bank in 2009. The regulator has given the rescued banks until September to recapitalise or face effective nationalisation or liquidation.

Finbank and FCMB announced their intention to combine their operations in May but gave no details.

"The merged entity will benefit from unique complementary transactional banking platforms and offerings, as well as leverage capital, optimise synergies and drive shareholder value," the banks said in a joint statement, which said the deal was subject to shareholder, regulatory and judicial approval.

The terms were not disclosed.

Two other rescued lenders -- Union Bank and Intercontinental Bank have also signed binding recapitalisation agreements with new investors.

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