Billionaire business mogul may have decided to exit banking business apparently after his sour encounter with Central Bank of Nigeria Governor, Mr. Lamido Sanusi, who has ordered him to dilute his holdings. AYO OLESIN reports.

Billionaire business mogul, Otunba Mike Adenuga Jr, may have offered to sell his stake in Equitorial Trust Bank and already two banks have shown interest, authoritative industry sources have disclosed to our correspondent.

Adenuga, who owns controlling stake in the Second National Operator, Globacom, and petroleum marketing company, Conoil and its upstream sister firm, Conoil Producing, is believed to have lost interest in banking business following the takeover of the bank‘s management by the Central Bank of Nigeria on October 2, 2009, on grounds of insufficient capital, according to sources close to the discussions.

Governor of the CBN, Mr. Lamido Sanusi, who replaced the bank‘s executive management team along with those of Bank PHB and Spring Bank after the second round of stress tests on banking sector operators, had also removed Adenuga from the board.

The business mogul was however reinstated a few weeks later after he met with Sanusi and agreed to pump in over N30bn to recapitalise the bank and correct other lapses in its management. He also executed a Deed of Covenant to that effect.

Sanusi‘s decision to review the action was reportedly based on the non-discovery of evidence of insider abuse or money laundering or other criminal activity during the special audit of the bank unlike the situation in other troubled banks.

ETB, which had merged with its sister firm, Devcom Bank, in the 2005 consolidation round in the banking sector, is the only universal bank not listed on the Nigeria Stock Exchange.

In restoring Adenuga to the board, the CBN had also tacitly asked him to reduce his holdings in the bank by floating its shares on the Nigeria Stock Exchange among other options.

This, according to the CBN, will allow for better corporate governance and was in line with the policy of not allowing ”sole proprietorships” of banks.

According to the terms of the Deed of Covenant, the shareholders of ETB are to recapitalise the bank by way of injection of additional capital latest by June 30, 2010; restructure, diversify and enlarge the capital base of the bank either by way of a public offering of shares, securing a core investor or merger with a local bank within a year period; and address the corporate governance issues in the bank.

The shareholders are also obliged to reconstitute the board of directors of the bank specifically by retiring two non-executive directors and appointing four new non-executive directors, subject to the approval of the CBN.