Qatar National Bank acquires major stake in ETI

Oscar Onyema
September 5, 2014

Qatar National Bank (QNB) acquired yesterday more than 11 per cent equity stake in Ecobank Transnational Incorporated (ETI) Plc in three deals worth about N35.4 billion.

Regulatory filing at the Nigerian Stock Exchange (NSE) indicated that QNB, which has Qatar Investment Authority (QIA) as its major shareholder, acquired about 1.77 billion ordinary shares of ETI in an off-market trade. Off-market trade implies that the deals were sealed outside the floor of the NSE, although ETI still has to report such transactions in compliance with the listing rules at the NSE.

ETI is listed on the NSE, Ghana Stock Exchange (GSE) and the BRVM.

The acquisition transaction, which was concluded in three deals, was sealed at N20.01 per share, more than 20 per cent above ETI’s opening price of N16.62 per share yesterday at the NSE.

Besides the ordinary shares acquisition, which gives QNB 11.1 per cent equity stake in ETI, QNB also acquired about 732.28 million preference shares. The acquisitions, the first by QNB in shares of ETI, give the Gulf bank a major inroad into the African market. ETI is a pan-African financial services holding company and it is the parent company of all Ecobank banking brand including Ecobank Nigeria Limited.

According to the regulatory filing, the acquisition of the ordinary shares is expected to complete in three days while the acquisition of the preference shares is expected to complete shortly thereafter. NSE operates a T+3 trading cycle, implying that transactions will be fully completed three days after the trading day.

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