Major stakeholders of Trade Bank resident in Kwara State, have intervened to save the merger talks between Afribank and the Trade Bank Plc,from collapsing.

From Tunde Sanni in Ilorin, 12.26.2005

Sources close to the stakeholders assured that the bank would retain its partnership with the Afribank, with just four days to the close of capitalisation in the banking industry.

Rising from a meeting where they had reviewed the survival strategies of the bank in the face of Afribank rejection of further talks, owing to a low capital base at the weekend, the stakeholders said they had got in touch with a principal facilitator, who had promised to inject N1.5billion into the bank to retain the merger betweenboth banks.

THISDAY had reported exclusively in its Sunday edition, that owing to a low capital base, principal partner in the merger with Afribank had declared that it was no more interested in carrying Trade Bank along, due to the perceived negative effect of its low capital base.

“The story in THISDAY was true as of 2p.m. on Friday, but between then and now, so many things have changed, and I can assure you that before the close of work on Wednesday or latest by Thursday, the bank would go back to Afribank with N1.5billion, to retain the merger. 

“There had been series of meetings since the event to see how we can save the Trade Bank from collapsing, and I can assure you that we have successively scaled that hurdle and the bank would live again,” a source close to the stakeholders confided in THISDAY last night.

Special Assistant on Media and Communications in Kwara State, Mallam Nurudeen Imam AbdulRaheem stated that the development was a shock to the government and assured that everything shall be done to ensure that the bank did not go under.”

“We are aware that the bank remains the only surviving state sponsored banks and for that the state governor has given his words that the Afri Bank capital demand must be met. We are one with the stakeholders and we will cooperate with everyone involved in this to see that the bank survives.”

Trade Bank spokesman, Tunde Olofintinla confided in THISDAY that the bank was ready to resume operations on Wednesday with the Afri Bank demand met. 

“We have done all that was to be done including talking with all major stakeholders and there are positive developments to the effect that the merger with Afri Bank has come to stay.”