I just saw online that Afribank has been acquired by Mainstreet Bank. Reading thru the articles, I quote "Nigeria's state asset management firm AMCON has taken over the running of the three new lenders, injecting 285 billion naira into Mainstreet Bank; 283 billion naira into Keystone Bank, formerly Bank PHB, and 111 billion into Enterprise Bank, formerly Spring Bank."

My Question is: Am I still a Shareholder and entitled for dividend or I forfeit my money?

Please I need some enlightenment.

http://www.reuters.com/article/2011/08/09/nigeria-banks-idUSL6E7J91WR20110809

You need a new buyer to come and take-over the bank from AMCON before you can sell-off your shares. As for whether you can claim dividend, I think you might have to ask AMCON. However, what AMCON is currently saying is that your bank is making a loss and that there is no profit to share. Hence, your hopes of having any dividend under AMCON is probably totally misplaced. Take heart and be patient.

Your money don go!

gbam !!!

I think what sanusi should have done is to allow the shareholders of this banks to recapitalize their bank,instead of sell it off.What happens to ur mone,I think that is a million naira question

chei, IT IS FINISHED. enemies at work again

There was nothing sanusi could and would have done. the banks were already dead before the intervention funds to try and re-capitalise as a going concern. the shareholders funds were already -ve, implying that the were debt-ridden, with no money left to trade.

If you are a shareholder,i sympathise with you, forget the names of BankPHB, Spring or Afribank ever existed.

Wish you luck in your futrure endeavors.

Yeah,The fact reamins that the shareholders sholud be given the right of first refusal

pappy2000:

I think what sanusi should have done is to allow the shareholders of this banks to recapitalize their bank,instead of sell it off.What happens to your mone,I think that is a million naira question

na wa ooooo

why will they give the depositors hope and the shareholders hopeless, oh Nigeria i dy cry in Chinese nchon con chon

Shareholdas of snatch bank or wat wil i call it. Dis act sanusi did waz daylite rubberi. Shareholdas jst get me sand on sanusi leg hav step on, I make sure he pay u guyz ur par value.

pappy2000:

Yeah,The fact reamins that the shareholders sholud be given the right of first refusal

So true, I wonder y he refused them the right really. He was prolly drunk on is powers as the CBN helmsman. i dont think there is any law that stipulates that the ordinary shareholders be given that right of election.

kenc21ng:

There was nothing sanusi could and would have done. the banks were already dead before the intervention funds to try and re-capitalise as a going concern. the shareholders funds were already -ve, implying that the were debt-ridden, with no money left to trade.

If you are a shareholder,i sympathise with you, forget the names of BankPHB, Spring or Afribank ever existed.

Wish you luck in your futrure endeavors.

True. Money don go. The shareholders funds is in debit meaning your stake in the bank is gone. Infact, the shareholders should be made to bring in more money so that the Net Liabilities of the bank can be turned into Net Assets.

2 ways:

1. Take over the banks, inject fresh capital into it (seeing that there is no more stake for the existing shareholders)
2. Liquidate the banks – But in liquidation, the people to be settled will be in the following order by the Receiver or Receiver and manager;
a. Secured Creditors,
b. Partly Secured Creditors
c. Unsecured Creditors
d. Shareholders (Owners)

Sanusi took option 1, which means, the new “owners” (AMCON representing the government) will manage the banks and sell it to new investors who will repay the government for the cash injected by AMCON except the govt wants to retain some stakes. The new owners after are not obliged to settle the previous shareholders as their stakes have been eroded by the losses except they just want to pacify you people a little bit but you are at their mercy.

With option 2, I am sure that by the time the assets of the company are realized and the first three are settled in order of significance, there will likely be nothing left to settle the owners, i.e., shareholders.

Option 2 has so much consequences that it is better to just stick to option 1 and pray that new off takers will come on board otherwise, govt may be forced to take stakes in those banks and taking us back to some past eras and wont create a level playing field for everyone amidst some other professional issues attached to it.

Any other certified accountant in the house can add to this. Just my two cents to clear the air.

chibest5:

why will they give the depositors hope and the shareholders hopeless, oh Nigeria i dy cry in Chinese nchon con chon

That is how it is done. Depositors are creditors and they are not the risk takers as compared to the owners (the shareholders). So, they are first settled before the owners, if anytin is left to be appropriated to them.

keep paper certificate

Your shares as a shareholder are totally gone. Just forget them as lost. Im also a shareholder in Afribank and I have accepted my shares as lost. The MD of AMCON, Mr. Chike-Obi was on Channels TV last week Saturday and he said that all shareholders have lost all their shares. So that is the situation.

Oga Check here: https://www.nairaland.com/nigeria?topic=730660.msg8886178#msg8886178

They are gone without remedy

use the certificate paper next time you wan go cast

Well, let me start by saying sorry about your loss, even before the nationalization of these banks, their shares were virtually worthless in the market. This said, there is still hope because all things being equal, the new owners of the nationalized banks should be able to provide some form of compensation. The sad part about this is that shareholders are usually considered last in this kind of situation and according to AMCON, there is the need to ensure that these banks are in good financial shape (at least to break even point) before  they can be sold off to new investors. This alone, is a painstaking process because of the present apathy for banking sector stocks and general investment climate globally.

Also, there is really no time frame for this turn around and right now, most of these shares are even trading at their 'par value' so I doubt if their future value would be worth anything when the new 'owners' take over. If you have been a shareholder for a long time and enjoyed some dividend payouts, then at least you can console yourself. If not then, it is not a good thing at all.

If I were in your shoes, I would cut my 'losses' and move on because there is no point worrying over those shares again; they are 'dead weight'. The most important thing is to learn from the whole experience so that the same mistakes are not repeated in the future.



Remember the true 'test' of a man is not determined by how many times he falls but how fast he gets up after each fall

ngozi iweala you destroy the economy with bank merge.

Keep your certificate, you will need it someday, sometime soon

musiwa.,.:

ngozi iweala you destroy the economy with bank merge.

OH My GOD, not again, ***********flips out********

You are no longer a shareholder.

With all of this I guess property investment pays off for now or better still becoming an entrepreneur!

cgift:



2 ways:

1. Take over the banks, inject fresh capital into it (seeing that there is no more stake for the existing shareholders)
2. Liquidate the banks – But in liquidation, the people to be settled will be in the following order by the Receiver or Receiver and manager;
a. Secured Creditors,
b. Partly Secured Creditors
c. Unsecured Creditors
d. Shareholders (Owners)

I love your explanation.
Oh ma gosh, hard earned money gone down the drain? I hope Intercontinental Bank will not fold up soon?
Who are the Secured Creditors, Partly Secured Creditors and the Unsecured creditors? Pls the answer to this question will help in lifting some people out of debt.

A secured creditor is a creditor with the benefit of a security interest over some or all of the assets of the debtor. In the event of the bankruptcy of the debtor(i.e the bank in this case), the secured creditor can enforce security against the assets of the debtor and avoid competing for a distribution on liquidation with the unsecured creditors. The 'lien' on the assets of the bank which is held decreases as the level of security interest also decreases.

Intercontinental Bank and Access recently completed a merger deal and TIA( transaction implementation agreement) has been signed.
Since, Access bank is the acquiring firm, what will be done is that the shareholders of the acquired firm(ICB) will be compensated with shares issued by the acquiring firm. This is done proportionally and using certain financial ratios to determine the amount to be issued to shareholders of the acquired firm.The sad news is that the existing shareholders of Intercontinental might not get much as the shares were trading at a historically low price when the transaction was consummated

Money don go. Just forget the loss and carry on.
I lost 146000 units in afribank and 20000 units in PHB(Total loss N4million)
However, it is not the end of the road,only a bend in the road. Life goes on. Life is a risk. investment too is a risk.
Appreciate the fact that you are alive today.
Only a living soul that can forge ahead.
Money don go.
Do not blame the CBN Governor Sanusi, rather blame the MD's and Directors who mismanaged the Banks.
Sanusi came to save and to reform the banking system.
We shareholders lost because we had the voting powers to vote out bad managers of our investment and we failed to exercise our rights
Now the question is this ''How many investors can interpret those audited reports of the banks and companies?
This is Ignorance & Accounting illiteracy on the part of many investors who are to blame themselves for this laxity
When the audited accounts of the banks and companies get to your post office box long after the Annual General Meeting of the Bank has been conducted and concluded,what can an investor do even if he can interpret the audited accounts. Blame the postal system for this lapse or who else can we blame for this?
When the head office of a bank is in Lagos and the Annual General Meeting is taken to Port Harcourt or Kano, how many investors can get there to exercise their voting rights to protect their investment? Blame the Bank Directors.
Blame the capital market operators and managers who manipulated the share prices in the capital market.
Lastly, blame yourself and me for investing our money in expectation of future returns on investment.
But Sanusi acted too hastily in the sale of Afribank ahead of the Sept 30 deadline which caught many investors unawares.

STILL ON THIS AFRIBANK SHARES, I VISITED A BRANCH OF MAINSTREET BANK IN IBADAN OYO STATE RECENTLY, AND I WAS TOLD THE RESPONSIBILITY OF THE SHARES HAVE BEEN TAKEN OVER BY A FIRM NAMED : AFRIBANK REGISTRARS LTD, OF THIS ADDRESS: 2, GBAGADA EXPRESS WAY,ANTHONY VILLAGE LAGOS. PLEASE I WILL SUGGEST ANYONE WHO STAYS IN LAGOS SHOULD FIND TIME TO VISIT THE PLACE AND LETS HEAR WHAT THEY WILL HAVE TO SAY, AND IF THERE IS ANYONE WHO HAS ALREADY DONE THAT, PLEASE KINDLY SHARE YOUR FINDINGS WITH US.