WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.
Original Post Date: 2010-11-29 Time: 20:00:04 Posted By: News Poster
By Festus Akanbi
Strong indications emerged at the weekend that troubled Societe Generale Bank will commence business in the first quarter of next year as negotiations with new investors have reached the final stage.
THISDAY exclusively gathered that the bank has successfully secured a core investor, which is working round the clock to open the bank for business early next year with a different identity.
A strong party in the negotiation, who spoke on the condition of anonymity said the institutional investor, (names withheld because the plan is yet to be ratified by the regulatory authorities) which is a local player in the finance sector, together with other co-investors have indicated their intention to invest N12billion for a majority stake in SGBN.
The investor had already deposited ten percent of the proposed N12 billion with the CBN.
The revived bank will operate as a regional bank when it resumes business. This is in line with CBN’s new policy on the categorisation of banks.
The source disclosed that the bank would reopen business in a different name since the Saraki family, a majority shareholder of SGBN has fully divested from the bank.
THISDAY gathered that in preparation for the re-opening of business, the bank will as from tomorrow (Monday) dispatch letters to select corporate clients, including high networth customers, and creditors with a view to intimating them with the latest development.
The letter, which conveyed the bank’s apology for the long delay and psychological stress brought by the closure, also assured the affected individuals and corporate organisations of the determination of the new bank to serve them better.
An electronic copy of the letter obtained by THISDAY, which was signed by the bank’s Head of Corporate Affairs Division, Mr. Iguwo Ukwu reads: “We write to express our deep appreciation for your understanding during this most difficult and trying period in the history of your bank, and provide you with an update on recent positive developments concerning SGBN.
“Following the restoration of the bank’s licence by The Federal High Court in April 2008, the board of directors constituted a restructuring management committee with a mandate to restructure the balance sheet, and improve the outlook and attractiveness of the bank towards a possible merger or acquisition. To this end, management took certain steps which included a bank-wide deposit verification exercise, asset audit, and aggressive loan recovery drive.
“To complement this effort, the legacy shareholders also made an injection of fresh equity, and repaid all director related loans. This move was favourably received by the Central Bank of Nigeria (CBN) which granted certain forbearances that has improved the bank’s financial position.
“We are pleased to inform you that we have secured a strategic investor, who together with other co-investors has indicated their intention to invest the sum of N12 billion for a majority stake in SGBN and operate it as a regional bank. This is in line with CBN’s new policy on the categorisation of banks.
“As a further indication of their commitment, the new investors have deposited 10 per cent of the required minimum capital with the CBN and we are now awaiting CBN approval to the acquisition. A joint proposal has been submitted to the CBN requesting among others, the approval of the business strategy, capital structure, and change of name.
“We apologise most sincerely once again for the inconveniences you have experienced during the period your funds were inaccessible, and wish to assure you that all customers will be paid in full as soon as the bank reopens for business.”
The bank’s managing director, Mr. Robert Mbonu, confirmed that plans are afoot to reopen the bank but declined to give details.
The source said with the regional licence, which the bank is gunning for, it would be easy to operate in the North central zone and south east which span 11 states and the Federal capital Territory, Abuja.
SGBN, in which Second Republic Senate Leader, Dr. Olusola Saraki, had a controlling stake, was sent out of the clearing house in 2003 following its inability to meet its financial obligations.
During this period, SGBN was also unable to fund its CBN Account, which was overdrawn by several billions of naira.
The embattled bank, which was then asked to recapitalise to the tune of N4 billion by the apex bank (the stipulated capital base of banks then was N2 billion) was said to have already raised N2.5 billion. The move was geared towards diluting the ownership structure of the bank.
The Chairman, Saraki, was said to have accepted to sell a substantial part of his holdings in the bank to professionals so that the bank could get back to profitability.
One of the two investors that showed interest was expected to acquire 51 per cent of SGBN, which was said to be worth over N2 billion. But eventually the deal could not sail through. Eventually, the bank was liquidated in 2005 on the order of the CBN.
SGBN then began the legal proceedings.
The development culminated in the ruling of a Federal High Court sitting in Abuja last April to the effect that CBN had not given the promoters of SGBN enough time to recapitalise. The CBN did not appeal the ruling. It said its decision not to appeal the judgment was informed by its desire not to further compound the suffering of depositors of SGBN whose money was trapped in the bank.
The court had given the SGBN 30 days to recapitalise or be acquired by another bank within the same period.
Recently, after the botched merger talks with Unity Bank, SGBN initiated discussions with Intercontinental Bank Plc. Due diligence was said to have been conducted, while SGBN, in a bid to tidy up the deal, requested additional 15 days, which was granted by the apex bank.
But the deal was said to have hit the rocks as the duo could not reach a consensus on certain issues relating to pricing.
Original Source: 
Original date published: 27 November 2010
Source: http://allafrica.com/stories/201011291506.html?viewall=1