‘Recapitalisation will reduce capital market infractions’
Friday Ekeoba, Lagos
Musa Al Faki, DG, SEC Following the on-going controversy
surrounding the recapitalization of stockbroking firms in the nation's capital market, Mr. Tony Anonyai, Managing Director of Strategy and Arbitrage Limited, has lent his support to the directive by the Securities and Exchange Commission (SEC), disclosing that the spate of market infractions currently witnessed in the capital market will be drastically reduced if stockbroking firms operate with a larger capital base.
Speaking in Lagos, Anonyai, disclosed that an enlarged capital base will ensure that the firm is professionally managed by qualified personnel who have integrity and knowledge of the capital market processes.
He said, “I am saddened each time I hear either the regulators or the public make derogatory statements about and against stockbroking firms. Some are quick to say, many of the stockbrokers are fraudulent, many of them are not straight. I do not think that is the attitude of the average broker, but you see, people readily make this assertion because of one or two bad eggs in the market and it has become virtually easy for some of this bad eggs to actually survive within the confinement of their small environment. This is because they do not have other people running the company with them, a good Board that they report to, that can review what they are doing and make specific input into the future of the firm”
He disclosed that the N1 billion capital base stipulated by SEC will help to ensure that all the stockbroking firms are well structured and are in a better capacity to deploy the necessary information technology infrastructure that will support the large volume of activity that is currently witnessed in the market in the years to come.
He advised stockbroking firms that can not meet the requirement to consider the option of merger, as the value that will be gotten from the exercise will not only be the joy of meeting the deadline, but also the development of the market and the professionalisation of the market that is expected to follow suit.
According to him, “I think it is the benefit that will accrue in running bigger firms than we have them today. That is a more structured and responsible firms, the firms that are well-funded to provide a career environment for those who are engaged in this practice, to provide the Information Technology (IT) infrastructures that will support the volume of activity that is going on in the market. Those who can not readily meet it, I am not saying it is that easy to attain, but those who can not meet it should consider mergers. The value that would come from that would be, not in terms of the capital requirement that will meet only, but in terms development and professionalisation of the stockbroking firms and profession”, he added
He debunked the notion held in some quarters by certain people that with N1 billion capital base, the stockbroking firms will not attend to small players in the capital market, saying that with a huge fund of that nature, the broking houses would be better equipped to engage in branch expansion which would further take their services to a larger majority of the grassroots across the country.
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Access Bank Plc completes acquisition of Omnifinance Bank, others
Friday Ekeoba, Lagos
Aigboje Aig-Imoukhuede,
MD, Access Bank Plc Following all required approvals, Access Bank Plc said it has completed the acquisition of three commercial banks operating in Cote d’Ivoire , Rwanda and the Democratic Republic of Congo (DRC).
Specifically in the Terms of Acquisition the bank acquired an 88 per cent interest in Omnifinance Bank, Cote d’Ivoire through a combination of purchase of existing shares and injection of additional capital just as it also acquired 75 per cent interest in Bancor Bank of Rwanda and a 90% interest in Banque Privée du Congo.
To this end Omnifinance Bank now has a capital base in excess of US$20million.
Mr. Aigboje Aig-Imoukhuede, Group Managing Director/CEO, Access Bank Plc said at the weekend the rationale behind these acquisitions are in line with Access Bank Plc’s African expansion strategy which commenced in March 2007.
“The acquisition of Omnifinance Bank will provide the platform for extending the Bank’s reach into the UEMOA (CFA Zone). It will assist the bank to complete its coverage of West Africa ’s two monetary zones.”
He noted that the bank intends to leverage on the acquisition of Bancor Bank S.A Rwanda, the fourth largest bank in Rwanda with strong shareholder and corporate customer base, to grow market share and build scale in East African countries such as Tanzania , Uganda and Kenya. The addition of Banque Privée du Congo will facilitate the Bank’s entry into the Central African region and provides the opportunity to harness the attractive growth potentials of the region.
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