The business Mogul, Dr. Mike Adenuga Jr, owner of Equitorial Trust Bank Limited (ETB) has acquired majority shares in Sterling Bank Plc following ,

current developments in the banking industry. Impeccable sources close to the management of ETB revealed this to Business Hallmark Monday, August 15, 2011.

The source also disclosed that many staff of ETB especially, in the top cadre from the position of Assistant General Manager and above have all been relieved of their duties to facilitate a hitch free merger between the two financial institutions. It was also confirmed to BH that the current Managing Director of the bank, said he will only help to see the merging arrangement through before his exit.


The combination would bring the new entity’s business network to 191. Both banks which signed a Transaction Implementation Agreement a few weeks ago have doubled efforts to ensure the success of the merger. Before now, ETB was one of the eight rescued banks and was managed by the appointee of the Central Bank of Nigeria (CBN).

Sterling Bank Plc is a medium sized bank with shareholders funds of about N30billion with 98 branches while ETB maintains 93 branches. Of all the banks operating in Nigeria, ETB is the only local financial institution that is not quoted on the Nigerian Stock Exchange (NSE). The bank was able to raise the minimum capital base of N25billion in 2005. Not much was heard about the bank until in September 2009, when the CBN sacked its Executive Management and replaced them with her appointees.

However, its new management quickly sacked 150 staff after it failed the stress test of the CBN to cut operational costs. The new management also slashed staff salary by half in order to continue as a going concern. As at last December 31, 2010, the CBN’s report showed that the bank had the smallest Negative asset value at N27.253billion. Nevertheless, the bank requires N52.253billion to recapitalize.

Mike Adenuga Jnr, had injected $150 million into the bank after the Central Bank of Nigeria removed its executive management. And the CBN had, according to reports, acknowledged notification of the action from the owner of the bank.

The business Mogul, Dr. Mike Adenuga Jr, owner of Equitorial Trust Bank Limited (ETB) has acquired majority shares in Sterling Bank Plc

Parley, what are you saying?