|
Ecobank Transnational launches $2.5 dollar share offer
Accra, Aug. 25, Ghanadot/GNA - Ecobank
Transnational Incorporated (ETI) on Monday launched
simultaneously the first ever cross-border shares to raise
2.5 billion dollars to expand its operations in Accra and
nine other African countries.
The offer, the biggest in sub-Saharan Africa, will run
through October 3, 2008.
Mr Mike Ashong, Managing Director of Ecobank Development
Corporation (EDC) said 56 percent of the expected capital
would be invested into existing subsidiaries in 25
countries, 22 percent for mergers and acquisitions of
“vulnerable” banks while 14 percent will be invested in new
markets.
Part of the money would be spent on technology and upgrading
of processing equipment, he added.
The 2.5 billion dollars equity offer consists of one billion
dollars rights issue and 1.5 billion dollars public offer.
Both will run concurrently.
ETI also hopes to raise 500 million dollars through debt
issues.
Under the offer, more than 3.5 billion ordinary shares of
0.025 dollars each and 0.27 dollars per share in a ratio of
five new shares for every nine existing shares would be held
payable in full on application and an offer for subscription
of more than 5.1 billion ordinary shares of 0.29 dollars
payable in full on application.
The nine other African countries where the launch was done
were Benin, Burkina Faso, Cote d’Ivoire, Guinea Bissau,
Mali, Niger, Nigeria Senegal and Togo.
If all the shares are not offloaded by October 3, 2008, they
would be entered into the Global Depository Receipt on the
London Stock Exchange.
Launching the offer, Mr Kwadwo Baah–Wiredu, Finance and
Economic Planning Minister, identified the banking and
financial sector as the most positioned sector that would
reap the expected benefits of the oil find within the medium
to the long term.
“At the end of May 2008 for instance, total assets of the
banking sector grew by 37.1 per cent year-on-year to GHC 8.4
billion.
Credit growth to enterprises and households remained
robust and broad based. Credit to the private sector and
institutions went up by GHC 1.7 billion, depicting 58 per
cent annual growth as at May 2008. Credit to the private
sector alone rose by 50.3 per cent (GHC 1.2 billion) as at
May 2008 compared to 47.8 per cent during the same period in
2007,” Mr Baah-Wiredu said.
Using the recent divestiture of Government’s holdings in the
State Insurance Company and the Ghana Oil Limited, the
Finance Minister pledged Government’s commitment to the
development of the capital market.
He announced the automation of the Ghana Stock Exchange and
said private sector participants and individual investors in
the capital market were expected to show greater dynamism
and interest to deepen fledging markets and make them more
efficient.
From a beginning of 100 million dollars in 1984, ETI, with
headquarters in Lome, Togo, has spread across 25 countries
in West Africa.
GNA
|
