…………..as CDC offloads 8.16% stake in the bank
Following a total of 12.9 million CAL BANK shares changing hands on the exchange last week, speculation is rife that the Bank is on the verge of experiencing a hostile takeover by a non-resident foreigner, thought to be a shareholder in Oceanic bank in Nigeria.
8% of CAL BANK shares, belonging to the Commonwealth Development Corporation, were offloaded on the floor of the exchange through SAS brokerage last Thursday, a situation that has heightened indications of a hostile takeover.
Reports reaching CITI FM indicate that the new investor has already begun enticing public shareholders, who currently own 43% of the bank, to part with their shares as it is aiming at a 50% ownership of the bank.
A source has hinted CITI FM that a number of corporate and individual shareholders of the bank have agreed to offload their stake in order to make way for the takeover.
A senior official of the Bank told CITI FM that they have information that the shares that were bought on the bourse last Thursday were initiated by the Nigerian investor, though it is not clear whether it is in pursuant of their aim to takeover the bank.
The official said there has, however, been no official approach by any investor for takeover talks with Management of the Bank.
A section of the Management of the Bank has also expressed worry about moves by the investor, which they see as a rough approach to own a greater percent of interest in the bank.
Meanwhile, CITI FM is reliably informed that the International Finance Corporation, major stakeholder of the bank, is also on the verge of offloading its shares after 16 years of active investment in the bank.
The IFC, which owns 16.45% stake in the bank, is thought to be looking for an exit. Mr. Afare Donkor, founder of the bank owns 12.67% stake, with a Saudi Arabian Prince having 10.73% of the shares.
Stock analysts have said that the move by the foreign investor to buy the entire bank might be scuppered as the Management of the bank is taking frantic steps to avert the eventuality.
A hostile bid occurs when an investor offers enticing prices to shareholders on the exchange in a bid to buy an adequate number of shares to gain dominion over the company without having to hold official discussions with the company’s management. CAL bank went public in 2004, the same year it became a universal bank.
