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Page 1: Lagos Journal of - Covenant Universityeprints.covenantuniversity.edu.ng/2868/1/Mergers...were unwilling to listen until the new order on July 6, 2004 (Famakinwa, Oduniyi, Aminu, Obikc
Page 2: Lagos Journal of - Covenant Universityeprints.covenantuniversity.edu.ng/2868/1/Mergers...were unwilling to listen until the new order on July 6, 2004 (Famakinwa, Oduniyi, Aminu, Obikc

Lagos Journal of

Banking, finance & Economic ages

33

1551J~5 53

74

94

10

Voll, No. 1 24

15

JULY2007

7

Page 3: Lagos Journal of - Covenant Universityeprints.covenantuniversity.edu.ng/2868/1/Mergers...were unwilling to listen until the new order on July 6, 2004 (Famakinwa, Oduniyi, Aminu, Obikc

Lagos Journal ofBanking, Finance & Economic Issues

Secretariat Department of Finance University of Lagos Akoka, Yaba, Lagos.

ISBN: 978-36813-1-1

Typeset in Nigeria by

Department of Finance University of Lagos Akoka, Yaba, Lagos.

Printed by: Chumek Ventures @ 0802 304 1380

ii

Vol.l,No.l J1

Articles

Reforms in 1l MI.

Reforms in T A de

External Sect Esth

A Review of S. 0

An Empirical Adet

ICT And Ban Osa.

Pension Refo Omt

An Evaluatio The External

Ade1

Mergers and . A. C

Legal Implic; The Nigerian

Onu

Pension Refo Nati

Page 4: Lagos Journal of - Covenant Universityeprints.covenantuniversity.edu.ng/2868/1/Mergers...were unwilling to listen until the new order on July 6, 2004 (Famakinwa, Oduniyi, Aminu, Obikc

Vol.l,No.l July, 2007

Articles

CONTENTS

Reforms in The External Sector of The Nigerian Economy M. I. Obadan & H. E. Oaikhenan ....... .. .. ... .... .. ... ..... .. .. ........ .. .. ........ ..... .. .. .. ... .. ..

Reforms in The Micro-Finance Sub-Sector

Pages

Ade Ojo. .. .... .. .. .. .. .. .......... .. .. .. .. .. ......... .. ..... .. .. ........... .. ............ .. ....... .. ....... ...... ..... 33

External Sector Reforms and Macro Economic Performance in Nigeria Esther 0 . Adegbite... .... . ..... .. ...... .... .. .. ... .... ......... ..... ...... .. .. ... .... .. .... .. .. ... .. .. .. . .... . .. 53

A Review of Financial Indicators of Banks Recapitalization and Performance S. 0 . Uremadu...... ..... ... ..... .. .... ...... .. .... .. .............. .. ..... .. ....... .... ....... ... .. .. ..... ...... ... 74

An Empirical Analysis of Dividend Policy of Nigerian Quoted Firms Adedeji, Adekunle Raimi & Oyatoye, Emmanuel Olateju................... .. .............. 94

ICT And Banks Reforms in Nigeria: Analysis of Anticipated Impacts in Selected Banks Osabuohien, Evans S. C........ .. .... .. .. .... .............. .. .. ..... .. .... .... .............. .. ...... .. .. .. ... 110

Pension Reform in Nigeria: An Overview Omankhanlen, Alex Ehimare............... ..... .... .. ................................... .. ......... .. ... ... 124

An Evaluation ofThe Impact of Central Bank ofNigeria's Management of The External Reserve on The Exchange Rate

Adetiloye, Kehinde Ade. ..... ......... ......... .. .. ..... .... ......... .. ... .. .. ..... .. ... ............. ...... ... 135

Mergers and Acquisition in Nigeria: Analysis of Performance Pre-And-Post Consolidation A. 0 . Umoren , D. T. Oyerinde & F. 0. Olokoyo.. ........ .. .. ...... .. .... .... .. .. .. .... .. ....... 151

Legal Implications of The New Procedure for Transfer of Shares as Security at The Nigerian Stock Exchange

Onuoha, Reginald Akujobi. ... . . . .. .. . . .. . .... .. . .. .. ... .. ... .. ... .. .. ... ...... .. .. .. .. .. .. .. .. ... . . .. . . . . . . . 167

Pension Reforms in Nigeria National Pension Commission......... .... ..... ..... .. .. ... .. .... ...... .. .. .. .. .. .... .... .. ....... .... .... 185

iii

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'a nee & Ecm1omic issue.,

:serve. Fact Sheets.

f a Central Bank's . 28/89. Helsinki .

ligher Educational

>xford University

ve Bank on Feb 12,

nns Press Release:

~ctive.

irowth. American

Memorial Lecture ~ntral Bank of the

________________ Lagos Jv1trnul a( Banking. Finan<.:e & Economic lsslte.\

MERGERS AND ACQUISION IN NIGERIA: ANALYSIS OF PERFORMANCE PRE- AND POST CONSOLIDATION

A.O. UMOREN, D.T. OYERINDE & F.O. OLOKOYO

Abstract

Department of Accounting and Taxation, & Department of Banking & Finance

College of Business and Social Sciences, Covenant University,

Ota, Ogun State.

The banking reform pronounced on the 6th of July, 2004 had been a major wave towards a diversified, strong and reliable banking sector in Nigeria. This paper examined the mega banks by evaluating their performance two years pre-consolidation and a year post-consolidation. It examined the impact of consolidation on performance and considers if there had been considerable improvement on their profitability, liquidity and solvency. In this study, we analyzed the performance ratio of a sample of seven (7) mega banks; which composed of nineteen ( 19) constituent banks pre-merger. A descriptive analysis ofthese performance ratios was carried out. Correlation Analysis was used to test the impact of the performance ratios on the return on equity. We found that, on average, bank mergers resulted to improved performance. The paper therefore suggests that the bank management should embrace broad product strategies, which could help in generating more income for the banks. They should also embrace diversification and financial innovation in order to produce new products and services.

SECTlONONE 1. Introduction The wave of mergers and acquisitions that currently swept through the banking sector stm1ed after the announcement by the Central Bank ofNigeria (CBN), that banks in Nigeria should beef up their minimum capital base to N25 billion on or before 31st December, 2005. As the termination date for banks' consolidation workout drew nearer, desperate efforts were made by the banks to meet the minimum capital fixed by the CBN before the expiration date. There were many options available towards solving the challenge of recapitalization. A bank could among other options merge with others or acquire smaller ones or volunteer to be acquired by others or do it alone or by combination of two or more of them. Nevet1heless, the strategies adopted by majority of these banks were mergers and acquisitions. These mergers and acquisitions brought about a fusion of the 89 banks in the country into mega banks units of only 25 . According to CBN report, 25 banks emerged at the end of the consolidation exercise from the previous 89 banks, while 14 banks were liquidated.

151

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"

~

q • ~ ~

--------·- --------------- Ltxo.\ .Jow lltJ! o{Banhing. Finan('(: & Economic f.\, UC '

Mergers and Acquisitions are commonplace in developed countries of the world but are just becoming prominent in Nigeria especially in the banking industry. Before the recent consolidation, the Nigerian banks have not fully embraced mergers and acquisitions as expected because of their cultural background in tenns of assets ownership, greediness, shame, fear of what people will say and lack of proficiency required f<>r mergers and acquisitions, among other reasons. The issue of mergers and acquisitions in banking industry started in October, 2003 under the past president of CBN . Although the CBN rolled out incentives to encourage weaker banks adopt mergers and acquisitions. The incentives included concessionary cash reserve ratio on a case- by -case basis for a period of two years to the newly restructured banks, conversion of overdrawn positions of weak banks to long-term loans with concessionary interest and the acquired banks could be given up to 24 months grace period for complying with the minimum liquidity ratio requirement to enable it settle down as a newly recapitalized/restructured bank. However, most of the feeble banks were unwilling to listen until the new order on July 6, 2004 (Famakinwa, Oduniyi, Aminu, Obikc and Ugwu 2004:1 0).

The situation changed from July 6, 2004 as many banks have either merged with or acquired other banks. The increase in awareness and scheme is due to a number of reasons such as threat of distress, regulatory driven environment, foreign inducement, persuasion fTom regulatory bodies and economic benefits of Mergers and Acquisitions. The most common of these factors that is responsible for the growth of mergers and acquisition in Nigerian Banks is regulatory factor. Mergers and Acquisitions have become a ncar pcnnancnt feature of our financial lexicon after July 6, 2004 (Ewubare, 2004: 3).

In the developed nations particularly in United States there had been extensive literature on the etiects of bank consolidation on performance (Aitunbas and Ibanez, 2004:5). Two main kinds of empirical methods in these literatures had been identified. On the one hand, some strand of studies compared pre- and post -merger performance, while on the other hand; some other studies used an event-study (e.g. stock market valuation) type empirical method. In Nigeria, bank consolidation is a new concept and the empirical literatures on this subject are just springing up. We have decided to adopt the former approach by comparing actual pre- and post- merger perfonnancc in a sample of seven mega banks for two years average pre-consolidation and a year post consolidation. We also examined the impact of strategic decisions on performance. The rest of the paper is divided into three sections. Following introduction, section two reviewed past studies on consolidation of the banking institutions through merger and acquisition, section three contains the data presentation and analysis of performance from 2003-2006, while section four contains the summary of findings, conclusion and recommendation .

152

SECTIONTW~

Literature Revi Banks in Nigeri These facto rs af strong ones and' incorporate intet sphere of global market. which tr offered in the d adequate capital An adequate car markets and en< increased capita acquisitions. Aii

A merger is es~

combining comr its original nam< the resource oft, the other is absc survives". Whil ownership and r the leadership of

The law on com and Allied Mat1 company merge are very few ca~ many multinati( have used the be.

Despite the gre financial interm having branche! Nigerian banks 2001: 73) .Three

Mergers and ace distress and chr financial , opcra1 and developing state that in Uni about 186 bank

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nking. Finance & Economic lsHil' .\

untries of the world but are .king industry. Before the 1 embraced mergers and round in tenns of assets .y and lack of proficiency . The issue of mergers and mder the past president of rage weaker banks adopt nary cash reserve ratio on a 1ewly restructured banks, o long-term loans with 1en up to 24 months grace uirement to enable it settle ·, most of the feeble banks 104 (Famakinwa. Oduniyi,

1ave e.ither merged with or :me is due to a number of ment, foreign inducement, 'Mergers and Acquisitions. the growth of mergers and ers and Acquisitions have fter July 6, 2004 (Ewubarc,

there had been extensive mce (Aitunbas and Ib{u'iez, ratures had been identified. I post-merger performance, Jdy ::ria, bank consolidation is a :just springing up. We have :ual pre- and post- merger s average pre-consolidation 1ct of strategic decisions on 1ree sections. Following 1solidation of the banking mtains the data presentation 1 four contains the summary

________________ Lagos .hmmal of Bunking, / 'inw;ce & t:cono111ic IS.III<'S

SECTION TWO Literature Review Banks in Nigeria operate in a dynamic environment atTected by myriad of factors. These factors affect the industry in variety of v.:ay creating both opportunities for the strong ones and distress for the feeble banks. One of' these factors is rapid revolution to incorporate international market away from individual domestic markets. Ent~ring the sphere of globally integrated capital markets will mean playing by the rules of that market. which means offering services and investor safeguards that compete with those offered in the developed markets (Okereke, 2004:75). This revolution calls for an adequate capitalization. which is a fundamental basis for solid and safe banking system. An adequate capitalization will give a bank a competitive edge at both global and local markets and enables it to offer better services and eventually increase its earnings. Increased capital base can be achieved through different ways that include mergers and acquisitions. As a result, many banks now engage in mergers and acquisitions .

A merger is essentially a fusion of' two or more companies in which one of' the combining companies legally exist and the surviving company continues to operate in its original name. Osamwonyi (2003:208), defines merger as "the pooling together of the resource of two or more corporate bodies, resulting in one surviving company while the other is absorbed and ceases to exist as a legal entity or remains a subsidiary if it survives". While acquisition is described as a business combination in which the ownership and management of independently operating companies are brought under the leadership of a single management (Umunnaehila, 2001 :4).

The law on company mergers and acquisition is stipulated in the Nigeria Companies and Allied Matters Act (CAMA) of 1990. Like many laws in Nigeria, the law on company mergers and acquisition has been largely una1Tectcd by the judiciary. There are very few cases of Mergers and Acquisitions of Nigerian companies. Nonetheless, many multinational companies engaged in multi-billion Naira businesses in Nigeria have used the benefits of mergers and acquisitions in the past.

Despite the great benefit of Mergers and Acquisitions as catalyst for enhancing financial intermediation, Nigerian banks shied a\vay from it but laid emphasis on having branches before CBN regulations July. 2004. The evidence of merger amid Nigerian banks was in 1992 between BI3WA and Anglo African Bank.(Umunnaehila, 200 I: 73 ).Three offers made by BBWA were unsuccessful.

Mergers and acquisitions arc motivated by myriad of factors. Principal among them is distress and chronic illiquidity. Distress is a situation, in which the bank is having financial, operational and managerial problems. Bank distress affects both developed and developing nations . Hempel and Simonson ( 1999) as cited in (Ailemcn, 2003:21) state that in United State of America. from 19R5 to 1992 there were 1304 failures or about 186 bank failures per year; from 1934 to I 984 there were 756 bank failures or

153

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• ~ ' r \

------------------------Lagos Journal o!Bcmki11g. Finance & Eu>numic 1"11es

about I 5 per year. While in Nigeria, the first indigenous bank (the industrial and commercial bank) established in 1926 failed in 1930.13y 1968, 19 out of23 indigenous banks established had failed (A biola, 2003:16 ). In 1995, 60 out of 115 banks in Nigeria were considered to be distressed (Umoh. 2004: 13).

A merger or an acquisition is a method that is carefully planned to achieve a synergistic effect (Akinsulire, 2002:329). The synergistic effect of mergers and acquisitions includes economics of scale through greater output, avoidance of duplication of facilities and staff services and stronger financial base. The economic benefits as rational for pursuing a merger or an acquisition include income enhancement, cost reduction and growth (Amedu, 2004: 14). According to Akinsulire, the reasons for mergers and acquisitions include to: buy up a company having competent management; improve earning per share, inject fresh ideas for better prospects and enhancement of shareholders' wealth, gain access to the financial market, eliminate duplicate and competing facilities, secure scarce raw materials, diversify into other products or markets or to complete a product range, greater asset backing; and enhance economy of scale and corporate growth.

In this research we analyzed the actual pre- and post- merger performance in a sample of seven mega banks, taking an average oftwo years performance ratios pre-consolidation and a year post consolidation. We also examined the impact of strategic decisions on performance. Our analysis followed the perspectives of evolutionary economic theories in line with the studies of Altunbas and lbanez (2004). This study assumed that financial data from individual banks reflects the strategic profile of merging institutions. In our study, we analyzed the factors that are expected to influence the success of M&As by considering whether the merger of tirms with similar strategic orientation could lead to higher profitability following the U.S and European experience. The importance of strategic and organizational aspects of M&A was first addressed by Levine and Aaronovitch ( 1981 ). After their studies there had been ample of literature that addressed this fact. Altunbas and Ibanez (2004) in their studies supp01ted the view that mergers between strategically similar firms are likely to provide greater benefits than mergers involving dissimilar strategies. The effect of changes on the capital levels on performance hinges on the recent theory of the banking firm, which is based on the 'specialness' of banks in a setting in which there are asynunetries of infom1ation.

3. Methodology, Samples and Data Sources Our data incorporated merger and acquisitions that took place during the consolidation ofNigerian banks in 2005 . Out of the 89 banks in existence at that time, only 75 crossed over either through merger, acquisition, private offers and public offers. 14 were eventually liquidated. Twenty-five (25) mega banks sprung up after this process. For our sampling, we analyzed a sample of seven (7) mega hanks; this is composed of nineteen ( 19) constituent banks pre-merger. The mega banks used for the study arc

154

T ntercontin1 OceanicBa Mbankl to informatior Analysis of performanc thcpcrfonn the annual r•

3.1 Varia A detailed a was drawn f industry ca definition o1

Table I. Defini1 rstrategy

Asset Profile

Capital Structure

Cqst controlling

Liquidity ri~k

Profitability Pcrfonnance

[ Size Source: Annual R•

We used a va1 Nigerian ban' of financial J=

efficiency a1 performance the acquisitio before the ac average oftw the effect of o the post meq process.

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fJcmkinK. Finance & Econumic !11ttes

1s bank (the industrial and :>68, 19 out of23 indigenous ) out of 115 banks inN ig:eria

med to achieve a synergistic F mergers and acquisitions voidance of duplication of The economic benefits as income enhancement. cost

Akinsulire, the reasons for mg competent management; )Spects and enhancement of et, eliminate duplicate and 5ify into other products or 1g; and enhance economy of

rperformance in a sample of nee ratios pre-consolidation 1ct of strategic decisions on of evolutionary economic )4). This study assumed that ategic profile of merging e expected to influence the tirms with similar strategic tg the U.S and European tl aspects of M&A was first tudies there had been ample iez (2004) in their studies similar firms are likely to ar strategies. The effect of recent theory of the banking setting in which there are

~ee during the consolidation at that time, only 75 crossed 10d public offers. 14 were tg up after this process. For banks; this is composed of mks used for the study are

-----------------Lagos Juttmal of' Banking, Finance & Econumic ls.wes

Intercontinental bank Pic, Access bank Plc, Fidelity bank Pic, TBTC- Chartered Plc, Oceanic Bank Pic, Bank PHB Pic and United Bank of Africa Pic hereafter referred to as Mbank 1 to Mbank7. To capture the strategic orientation of the merged firms, financial information over the nvo years prior to the merger is taken into consideration. Ratio Analvsis of accounting data of the bank was constructed and a descriptive analysis of pert(;rmance ratios was done. Correlation Analysis was also used to test the impact of the performance ratios on the return on equity. The accounting data was ex tractcd from the annual reports ofbanks and the respective scheme of merger of some banks.

3.1 Variables and Samples A detailed account of our variable is as highlighted in Appendix I. The initial sample was drawn from a population of25 successful merged banks. As at June 2005. the total industry capitalization was N521.5billion (Lemo, 2006:28). Table 1 shows the definition of our variables, this includes the strategy, symbol and f(mnula.

Table I Definition of the variables ···-r Strategy

······-Symbol

·····--Definition Formula

i i

Asset Profile Loans-total assets TLffA Loan and Advances I Total assets

Loans-total deposit TLfrD Loan and Advances I Total deposits

Credit risk PLLiffL Provision for loan losses I total loan

Capital Structure Capital-assets ratio SFffA Shareholders fund/total asset -·-

Cqst controlling Cost:income ratio OEINE Overhead expenses fnct

Liquidity risk Liquidity CSTID earnings _ ·-...,..,--Cash and Short term fund/ Deposit

Profitability Profitability ROA Gross earnings I total asset Perfonnance Performance change ROE Return on equity (post

merger)- weighted average return on equity ( premerger)

Size Total Assets TAssel Total asseL~ Source: Annual Reports and scheme of merger of selected banks

We used a variety of financial indicators to define the strategic features of consolidated Nigerian banks. These indicators are the independent variables, these include measures of financial perfom1ance: asset composition; capital structure; liquidity; profitability, efficiency and risk exposure. As dependent variable, we measured change of performance as the difference between the merged banks' return on equity (ROE) after the acquisition and the weighted average of the ROE of the merging banks two years before the acquisition. While capturing the samples, we considered the weighted average of two-year time window pre- merger to avoid distortion that could result from the effect of other economic factors. One- year time window was only considered for the post merger because only one-year result is available after the consolidation process .

155

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,..--

~

~

------------------------Lagos .Joumal ojBanAing. /"ina nee & [;", ·onomic lswcs

From the accounting data the indicators were computed using several dimensions. These signified strategic relatedness of banks involved in M&A activity. The strategies considered are as indicated in Table I, these are: Asset profile, Capital Adequacy, Cost Control, Liquidity, Profitability and Credit profile.

The asset profile strategy considered the banks' balance sheet loan compos1t10n, measured by the ratio of total loan and advances to total assets ratio (TL!TA). Also, it measured the balance between loans and deposits, the ratio of total loans and advances to total customer deposits (TL!TD). This ratio provides a proxy for the use of relatively low-cost deposits in relation to the amount of loans. Credit risk is measured as the level ofloan loss provisions divided by total loans (PLL/TL).ln general, it can be argued that better post-merger perfonnance may be expected when banks with very similar asset quality merge. The greater the similarities among the asset profile strategies, the higher the performance expected after merging.

The capital adequacy strategy relates to the capital structure, measured as the ratio of shareholders fund to total assets (SF/TA). Regulators have given this strategy increased importance in order to introduce competition in banking and to check risk-taking with capital requirements. Banks with lower capital ratio can signal favourable information after merging with banks with larger capital ratio.

The cost controlling strategy shows the emphasis to minimize cost by relating operating expenditure to returns and it is measured by the operating expenses to net earnings (OE/NE). As a result of economics of scale deriving from the combination of similar skills, a bank competing on the basis of low-cost and operating efficiency is expected to benefit from merging with another similarly strategizcd bank. These banks will show a higher performance after merging.

The Liquidity risk strategy referred to banks' strategy towards managing liquidity risk mcasmcd by the ratio of cash and short-term funds to deposits. (CST/D). A better liquidity management of the merged banks would imply a better performance. Finally, the Profitability is measured by the ratio of gross earnings to total assets. This ratio indicates the asset turnover. A higher ratio is expected when banks merge.

4. Empirical Results The statistics indicate that, in terms of size, measmed by total assets, banks on average grew considerable by 131% post-consolidation. An illustration of their growth is as shown in figure 1 below. The lower line indicates the pre-merger position while upper line indicates the post-merger assets. The figure shows a clear synergistic effect of the bank size.

156

As seen i bank exc

The chan above. Th performa1 slight dec

Tables 3 l mega ban

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·!{Banl.ing. Fina11ce & J::, ·o/lo/1/ic ls~no

ed using several dimensions. 1 M&A activ ity. The strategies rotile, Capital Adequacy, Cost

mce sheet loan composition, I assets ratio CI'LiTA). Also, it tio of total loans and advances t proxy for the use of relatively 1it risk is measured as the level fn general , it can be argued that banks with very similar asset

et profile strategies, the higher

cture, measured as the ratio of :e given this strategy increased ~and to check risk-taking with signal favourable information

mize cost by relating operating tting expenses to net earnings om the combination of similar ·rating efficiency is expected to bank. These banks will show a

>wards managing liquidity risk o deposits . (CST/D). A better 1 a better perf(>rmance. Finally, tings to total assets. This ratio ten banks merge.

r total assets, banks on average .ustration of their growth is as re-mergcr position while upper a clear synergistic effect of the

-----------------Lagos Jon mal of'Ba11ki11g. Fi11ance & t:conomic Issues

800

700

600

~500 i 'li400 2

300

200

100

Figure 1: Total Au eta comparison pre· and post· merger

I bank1 bank2 bank3 bank4 bankS bank6 bank7

mega banks

--pre merger

· . .... postmerger

As seen in figure one, the value of the pre merger assets grew considerably for each bank except for bank 4 which grew marginally by 16%.

Figure 2: Return on Equity pre- and post· merger

4T----~~------~------, 3.5

~ 3 & 2.5 .. ~ 2

~ 1.5

i 1

0.5

0~--~~-T----~--~--~-~--~ bank1 bank2 bank3 bank4 bank5 bank6 bank7

Mega banks

-- premerger

-- postmerger

The change in performance, measured by retum on equity is as depicted in figure 2 above. Three of the banks, bank 1, bank 5 and bank 7 showed a considerable increase in performance, bank 4 showed a slight increase, while two banks, bank 2 and 6 showed slight decrease. However, only bank 3 showed a major decrease in performance.

Tables 3 and 4 depict the descriptive statistics of the financial features of the seven mega banks n aggregate

157

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r-

~

~ ~

\

________________________ Laxos Jouma/ of Banking. Finance & Economic ls1ue.,

Table 3: Descriptive statistics pre merger

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation ROE 7 .2499 2.2654 .811114 .678611

TASSET 7 32867.00 309629.0 132980.9 93091 .262349

TLTD 7 .3334 .7382 .534086 .144712

TLTA 7 .2570 .3841 .324457 5.03271 E-02

OENE 7 .3363 1.8187 .738343 .491997

SFTA 7 .0863 .2148 .139329 4.87561 E-02 CSTD 7 .3590 .8404 .587757 .177282

PLLTL 7 .0033 .0514 3.69E-02 1.58626E-02

GETA 7 .1314 .2321 .180143 3.48979E-02 Valid N (listwise) 7

Table 4 : Descriptive statistics post-merger

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation ROE 7 .1056 3.2487 1.189829 1.163145 TASSET 7 110781.0 851241 .0 306435.7 263657.7118 TLTD 7 .1415 .8773 .469314 .238216 TLTA 7 .1259 .4519 .307814 .114190 OENE 6 .3123 .7766 .599783 .173818 SFTA 7 .0559 .2845 .164643 7 .42928E-02 CSTD 7 .0662 .6756 .331057 .244354 PLLTL 6 .0042 .1229 4.01E-02 4.30445E-02 GETA 7 .0765 .1203 9.69E-02 1 .46811 E-02 Valid N (listwise) 6

4.1 Interpretation of Results Regarding the impact of banks' mergers on perfonnance, there is an increase in post­merger performance (.6.ROE) with maximum of 3.2487 and minimum of 0.1056 and mean percentage change of 40%. The improvement in performance is also confirmed by the post merger standard deviation of 1.16. The post-merger mean figure for the relative size indicator (TASSET) N306,435.7m is a considerable improvement on the pre-merger figure ofN 132,981 m and shows an increase of 131% as earlier stated.

In terms of their asset profile, the mean of post-merger loans asset ratio (TL/TA) 0.3078 is lower than the pre-merger ratio of 0.3245. Also, the post-merger loan deposit ratio (TLITD) 0.4693 is lower than the pre-merger ratio of0.5341. This decrease shows that there is a better post-merger performance with the use of relatively low-cost deposits in relation to the amount of loans and in the management of assets in relation to total loans. . Credit risk as measured by the level of loan loss provisions divided by total loans

!58

(PLL!TL) also sh greater than the l indicate that the n better post merger

The ratio of shar adequacy. shows : was as a result of c to beef up their IT

before the merge1 larger capital ratio

The operating cffi1 shows that mean generally the new been as a result o! and technology.

The Liquidity risl banks. The mean 11 after the merger. I that there is a cons pre-merger and p< earnings is inadeq broad product stral

Appendix 3 consif find some correlat their numerator or the possibility of though, the proble. results of the descr

5. Conclusion l Generally, our fin1 institutions tend to however, the result

Following our rese I . Asset turnover embrace broad pre banks. They shot producing new pro

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nul of Banking. Finance & Economic Issues

Mean Std. Deviation .811114 .678611

132980.9 93091.262349

.534086 .144712

.324457 5.03271 E-02

738343 .491997

.139329 4 .87561 E-02

. 587757 .177282

i 3.69E-02 1.58626E-02

.180143 3.48979E-02

Mean Std. Deviation 1.189829 1.163145

306435.7 263657.7118

.469314 .238216

.307814 .114190

.599783 .173818

.164643 7.42928E-02

.331057 .244354

4.01E-02 4.30445E-02

9.69E-02 1.46811 E-02

mce, there is an increase in post­~87 and minimum of 0.1056 and 1n performance is also confirmed post-merger mean figure for the :onsiderable improvement on the se of 131% as earlier stated.

·loans asset ratio (TLITA) 0.3078 1e post-merger loan deposit ratio 0.5341. This decrease shows that of relatively low-cost deposits in of assets in relation to total loans. >revisions divided by total loans

________________ Lagos .Juurnal of Banking, Finance & Economic Is.\ Ill'S

(PLL!TL) also showed a better post merger performance as the post-merger figure is greater than the pre-merger i.e. (0.0401 >0.0369). Overall, the performance indices indicate that the merged banks were able to hedge against their credit risk and have a better post merger asset profile.

The ratio of shareholders fund to total assets (SF/TA), which indicates the capital adequacy, shows a pre-merger ratio of0.1393 and a post-merger ratio of0.1646. This was as a result of one of the major agenda of the recent banking reform that made banks to beef up their minimum capital base to N25 billion. Banks with lower capital ratio before the merger had their capital structure uplifted after merging with banks with larger capital ratio .

The operating efficiency ratio measured by operating expenses to net earnings (OE/NE) shows that mean difference is lower post-merger by 0.1386. This indicates that generally the new bank management embraced a low cost strategy, which could have been as a result of economies of scale deriving from the combination of similar skills and technology.

The Liquidity risk strategy indicates a better liquidity management of the merged banks. The mean liquidity ratio represented by CST/D decreased from 0.5724 to 0.3310 after the merger. Lastly, when considering the profitability ratio (GE/TA), it revealed that there is a considerably decrease in the asset turn. The ratios are 0. 1801 and 0.0969 pre-merger and post-merger respectively. It reveals that the management strategy on earnings is inadequate. Over time it is expected that bank management should embrace broad product strategies.

Appendix 3 considers the correlations among the different variables. As expected, we find some correlation between those ratios that share the same balance sheet item on their numerator or denominator (such as SF/TA and TL!TA). The implication of this is the possibility of some multicollinearity between some of the variables expressed though, the problem does not appear to be large enough to distort the implication of the results of the descriptive analysis.

5. Conclusion and Recommendations Generally, our findings support the hypothesis that, on average, strategically similar institutions tend to improve performance to a greater extent than dissimilar institutions, however, the results differ for individual banks.

Following our research findings, the following suggestions are recommended. I . Asset turnover was found to be considerably low, so bank management should embrace broad product strategy, which could help in generating more income for the banks. They should also embrace diversification and tinancial innovation from producing new products and services.

159

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~ q • r ~ l~o

~

~ ~;- · I .

.. JS,'t'

'!.

-------------------------La go' .Journ<il u( lJanl.ing. rillllll<'e & 1::cono111ic !nun

2. Banks should ensure they take into cognizance the prominence of traditional and nonnally un-hedged loan lending in tem1s of its weight on the overall portfolio. In general, when banks with different asset quality and overall p011fol io strategies merge it is expected that the post-merger performance will worsen hence merged banks need to align their asset quality and portfolio strategies to achieve betterperfom1ance.

3. Management should learn the act of outsourcing the banks' surplus total assets in such a way that earnings on total assets can be maximized.

4. Management should take cognizance of retaining cost controlling strategies on the long run. By implementing these individual low cost strategies, the merged banks can achieve synergistic advantages.

5. Since it could be seen from the study that some mega banks with unsatisfactmy post­merger performance were pursuing dissimilar strategies before the merger exercise, merged banks should ensure that they align their strategies for synergy .

References Abiola, R. 0. (2003): "Effects ofBank Distress on the Economy: The Nigerian Case", he Nigerian Banker, October-December.

Adeyemi, K.S. (2005):" Banking Sect9or Consolidation in Nigeria: Issues and Challenges", Union Digest, Vol9, No 3 & 4, December

Akinsulire, 0.(2002): Financial Management, Lagos, El-Toda Ventures Ltd.

Ailemen, I. 0. (2003): "Bank Distress: Concepts, Causes and Magnitude, Role ofTrade Union and Bank Management" The Nigerian Banker, October-December.

Altunbas, Y. and D.M. Ibanez, (2004): '·Mergers and Acquisitions and Bank perfonnance in Europe the Role of Strategic Similarities" European Central Bank, Working Paper Series, No 398, October.

Amedu, S. (2004): ''Corporate Takeovers, Acquisitions and Mergers II (Concepts, Financial Terms of Exchange, Transaction Packaging and Legal/Regulatory Framework)", The Nigerian Stockbroker, Vol. 5, No.4.

CBNINDIC ( 1995): "Distress in the Nigeria Financial Services Industry •· A CBNINDTC Collaborative Study, Lagos. Page Publishers Service Ltd.

Ewubare R. (2004) :''Mergers and Acquisitions: Prospects and Implications for Capita 1 Market Practitioners" The Nigerian Stockbroker, October December Vol.5 No.4.

160

Famakinwa, S Banks to Come

Lemo, T ( 200• Accountant, Vc

Levine, P. and~ of merger activ

Okereke. N. (. Development".

Okpugie, G., E Banks to22"H

Osho, M. (20( Experience", C

Osamwonyi, C Case" Account Nigerian Accm

Umoh, N. P. ( Central Bank o1

UmUimaehila, Publishers.

Usman, S.(2001

Page 15: Lagos Journal of - Covenant Universityeprints.covenantuniversity.edu.ng/2868/1/Mergers...were unwilling to listen until the new order on July 6, 2004 (Famakinwa, Oduniyi, Aminu, Obikc

f Banking. rinaiiCe & /:."('{)1/<Jl//ic fHIIe.,

rominence of traditional and t on the overall portfolio. In II portfolio strategies merge it 1 hence merged banks need to better perf on11ancc.

ks' surplus total assets in such

controlling strategies on the tegies, the merged banks can

1nks with unsatisfactmypost­before the merger exercise, for synergy.

1omy: The Nigerian Case",

ton m Nigeria: Issues and

'oda Ventures Ltd.

nd Magnitude, Role ofTrade bcr-Dcccmber.

1d Acquisitions and Bank :s" European Central Bank,

and Mergers II (Concepts. :ng and Legal/Regulatory

rices Industry" s Service Ltd.

:111d Implications for Capital DccemberVol.5 No.4.

________________ Lagos .Juunwl of Banking. Fizwncl! & Economic Issues

Famakinwa, S., Oduniyi, M., Aminu, A., Obikc, U and Ugwu, E.(2004): "Shape of Banks to Come (2): The Soludo Solution ... ", Thisday, July 12, Vol. I 0, No.3367

Lcmo, T ( 2006): "Bank Post Consolidation Prospect and Challenges'', The Nigerian Accountant, Vol 39 No 4, October/December.

Levine, P. and S. Aaronovitch ( 1981 ), The financial characteristics of firms and theories of merger activity, The Journal oflndustrial Economics 30, 2, pp. 149-172.

Okereke, N. (2004): "Global Trends in the Role of Capital Market in Economic Development", The Nigerian Stock Exchange Factbook.

Okpugie, G., Eke, E. and Mbamalu, M. (2005) :"Mergers and Acquisitions Shrink 89 Ranks to22" The Guardian, October 16.

Osho, M. (2004), "Consolidation through Mergers and Acquisitions: The African Experience", Central Bank ofNigeria, Fourth Annual Monetary Policy Conference.

Osamwonyi, 0. (2002): "Mergers and Acquisitions: The Anatomy and the Nigerian Case" Accounting: The Nigerian Perspective Ezejelue A. C. and Okoye A.E.(eds), Nigerian Accounting Association.

Umoh, N. P. (2004): 'Capital Restructuring of Banks: A Conceptual Framework", Central BankofNigeria, FowthAnnual Monetary Policy Conference.

Umunnaehila, A. (200 I): Corporate Restructuring m Nigeria, Lagos, Foundation Publishers.

Usman, S.(2006): "Post Merger Integration: Matters Arising'' The Guardian, March 22,

161

.~~

..- .4 :-""!.flto

. •.-9\ ... . ... ~~~ .

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------------------------ Laxos Journal of'lJanAing, r·inance & Eomomic ls \'1/e,,

~IJiJI!t:UUI.A J. ""Rl UIUI~ ..:laiUIJ'If;3 MIIU I !Jt;J lUI Ulllli~C: ~UU~

Mega bank Total assets Total assets Total assets Pre-merger Post-merger Difference

~

Q Mbank1 182,784 360,903 178,119 97.44780725 Mbank2 77,198 174,553 97,355 126.1107801 Mbank3 32,867 119,985 87,118 265.0622205 Mbank4 95,956 110,781 14,825 15.44978949 Mbank5 156,487 371,586 215 099 137.4548685 Mbank6 ' 75,945 156,001 . 80,056 105.4131279 Mbank7 309,629 851,241 541,613 174.9233355

Mega bank ROE ROE ROE

I I Pre-merger Post-merger Difference Mbank1 0.9032 1.6032 0.6999 Mbank2 0.2499 0.1056 -0.1443 Mbank3 0.7804 0.3842 -0.3962 Mbank4 0.4133 0.6841 0.2707 Mbank5 0.6055 2.0527 1.4471 Mbank6 0.4601 0.2503 -0.2098 Mbank7 2.2654 3.2487 0.9833

Mega bank TLITD TL!TD TL!TD Pre-merger Post-merger Difference

Mbank1 0.5362 0.6300 0.0938 Mbank2 0.5136 0.4880 -0.0255 Mbank3 . 0.6725 0.4916 . -0.1809

Mbank4 0.7382 0.8773 0.1390

Mbank5 0.3815 0.3187 -0.0627

Mbank6 0.5632 0.3381 -0.2251

Mbank7 0.3334 0.1415 -0.1919

M~ga bank TlfiA TL!TA • TL!TA Pre-merger Post-merger Difference

Mbank1 0.3649 0.4404 0.0755

Mbank2 0.3151 0.3100 -0.0051

Mbank3 0.3841 0.3222 -0.0619

Mbank4 0.3684 0.4519 0.0836

Mbank5 0.3151 0.2662 -0.0489

Mbank6 0.2570 0.2381 -0.0190

Mbank7 0.2666 0.1259 -0.1407

162

~­~ Mbank7

--·-,M_~g~~

L------lM.t:J9n.~1 -Mbank2

M..t:l.?.!:'.~

Mbank7 "-------\Mega bank

~ Mbank2 Mbank3 Mbank4 ..----Mbank5 ...----~ ~

~ega bank

Mbank1 Mbank2

~ ~ Mbank5 Mbank6

~

Mega ban~

~ Mbank2

~ ~ Mbank5 Mbank6 Mbank7

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~nkin)i, Finance & Economic !Hue., _________________ Lugos .loumal o(llanking, Finance & Economic Issues

- 0 -E/_N_E_t··· OE/NE Me a bank OE/NE =:... -· ·-····· ------ . ---···· - --~--

I assets mee

.. - . . .... ~ Pre-merQer --·--· Post-merger - -- Difference ··-···-· ···--·······---- 'i

:MQ?_nl51 0 .6186 0.6366 0.0180 l -··------··· - - ··-····-

~-~? . 0.7238 0.7699 0.0462 --· ·····-·-- -·······I

~n~-~ 0 .5241 N/A N/A I ... -----· ·--- I ------- ..

;Mbank4 1.8187 0.3123 -1 .5064 178,119 97.44780725 97,355 126.1107801

--__ ,_ .. ----- -··-- --- ---

~? . --· ... ... 0 .5074 0.5850 0.0776 ---··-·---····--·- ---- ···- ·······--······--· Mbank6 I 0 .6395 0.5183 . -0.1212 --- ---

87,118 265.0622205 Mbank7 -------------- ------ 0 .3363 0.7766 0.449~ ... ·······-·····-······ 14,825 15.44978949

215 099 137.4548685 80,056 105.4131279

541,613 174.9233355

··--·-···· .. ·······------ ---·-·····- ... ·········-· ~~~a bank ... --- SFfTA ... SFfTA SFfTA

-----·· ... I P rE!~_fT1_ergf:!!: Pos.!:r:Tle.~:g_er •Difference f·-········· ---- ··----··· •. -------, ~_I??D.~1 -- ------······· ·- 0.1082

---0.1493 0 .0411 _______ ____J

Mbank2 0 .1625 0.1655 0.0030 I

--1 Mbank3 0.1796 0.2133 0.0337 ! ------ ..... ---·- ·--·--·--

!OE

nee 0.6999

-0.1443

Mban~1__ 0 .2148 0.2845 0.0697 ; --·-- - ---1

~..? .. 11.~? - 0.0863 0.1014 0.0151 ----- ····- ···-·· --- ----~ Mbank6 ···-----· . ---- I 0 .1357 0 .1_~_26 0.0469 iMban.!5_?. _____ .. 0 .0882 .Q,Q559 -0 .0322

---············---··

-0.3962

0.2707

Mega bank CST/D CST/D CST/D Pre-merQer Post-merQer Difference

Mbank1 0.4761 0.2812 -0.1949 1.4471 Mbank2 0.4759 0.4172 -0.0587

-0.2098 Mbank3 0.7556 0.1548 -0.6008 0.9833 Mbank4 0.8404 0.1096 -0.7307

Mbank5 0.3590 0.0662 -0.2928

lTD Mbank6 0 .7005 0.6756 -0.0250

nee Mbank7 0.5068 0.6128 0.1059

0.0938

-0.0255 MeQa bank PLLITL PLLITL PLLITL -0.1809 Pre-merger Post-merger Difference 0.1390 Mbank1 0.0447 0.0042 -0 .0406

-0.0627 Mbank2 0.0346 0.0256 -0.0090

-0.2251 Mbank3 0.0463 N/A N/A

-0.1919 Mbank4 0.0409 0 .1229 0.0820 Mbank5 0.0514 0.0175 -0.0339

iTA Mbank6 0.0371 0.0219 -0.0152 Mbank7 0 .0033 0.0483 0.0450

1ee 0.0755 Mega bank GEfTA GEfTA GEfTA

-0.0051 Pre-merger Post-merger Difference

-0.0619 Mbank1 0.2185 0.1075 -0 .1110

0.0836 Mbank2 0.1829 0.0765 -0 .1064

-0.0489

-0.0190

Mbank3 0.2321 0.0964 -0 .1357 Mbank4 0.1667 0.0935 -0.0732 Mbank5 0.1578 0.1203 -0.0375

-0.1407 Mbank6 0 .1716 0 .0832 -0.0885 Mbank7 0.1314 0.1011 -0.0303

163

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------------------------- La!{OS Journal of Banking f-inan ce & l:."nmomic /n un

17 Sprint Appendix 2: Consolidated Banks and Constituents

Pic Consolidated Concstituent Members of the Bamk Bank Access Bank Pic Access Bank

Marina International Bank I Capital Bank International

I 18 Stanbi ~ 2 \ Afribank Pic Afribank Pic

~ · Afrimerchant Bank

I 19 Stand1 Diamond Bank Diamond Bank

Chartt 3 Pic Lion Bank

Ltd African International Bank

20 Sterlir ~ 4 EcoBank EcoBank

\ 5 ETB Pic Equatorial Trust Bank ' Devcom

6 FCMB Pic FCMB Co-operative Development Bank

' 21 UBAI Nig-American Bank Midas Bank

7 Fidelity Bank Pic Fidelity Bank

22 Union FSB Manny Bank

8 First Bank Pic FBN pic, FBN Merchant Bank

23 Unity I MBC 9 Firstlnland Bank 1MB

Pic Inland Bank First Atlantic Bank

· NUB 10 Guaranty Trust GTBank

Pic 11 IBTC-Chartered Regent Bank

Bank Pic Chartered

24 Wema IBTC 12 Intercontinental Intercontinental

25 Zenith Bank Pic Global

Intema Equity ~

Bank P Gateway 13 NIB Nigerian International Bank

14 Oceanic Bank Pic Oceanic Bank Source: Adey

International Trust Bank 15 Platinum-Habib Platinum Bank

Bank Pic Habib Bank 16 Skye Bank Pic Prudent Bank

EIB Reliance Bank Coop Bank, Bond Bank

164

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--- --- ------ --- - -- Lagus .foumu/ of Banking, Fi•lwTce & Economic Issues

17 Springbank Bank Pic

I

18 Stanbic Bank Ltd

19 Standard Chartered Bank Ltd

20 Sterling Bank Pic

21 UBA Pic

22 Union Bank Pic

23 Unity Bank Pic

24 Wema Bank Pic

25 Zenith International Bank Pic

Source: Adeyemi(2005:42)

Guardian Express Bank Citizens Bank ACB Omega Bank Fountain Trust Bank Translnternational Bank Stanbic Bank

Standard Chartered Bank Ltd

Magnum Trust Bank, NBM Bank NAL Bank INMB Trust Bank of Africa UBA STB CTB Union Bank Union Merchant Bank Universal Trust Bank, Broad Bank New Africa Merchant Tropical Commercial Bank NNB Bank of the North Centre-Point Bank First Interstate Bank Intercity Bank Societe Bancaire Pacific Bank WemaBank National Bank Zenith International Bank Pic

165

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I

~ I

l \

__________________________ Lagos Journal ufBallkill!', Fi111111ce & Economic / ,1.1'11£'.1

Appendix 3: Correlation of the Variables

ROE TASSEl ROE Peal'$0n Correlation 1.000 .942'

Sig. (2-tailed) .001

N 7 7

TASSEl Pearson Correlation .942' 1000 Sig. (2-tailed) .001

N 7 7 TLTD Pearson Corretation -.517 -.654

Sig. (2-tailed) .235 .111

N 7 7 TLTA Pearson Correlation -.473 -.638 \ Sig (2-tatled) .264 .123

N 7 7 OENE Pearson Correlation .383 .601

Sig. (2-tailed) .453 .207 N 6 6

SFTA Pearson Correlation -.776' -.647' Sig. (2-tailed) .040 .016 N 7 7

CSDA Pearson Correlation .098 .379 Sig. (2-tailed) .834 .402 N 7 7

PLTA Pearson Correkttion -101 -.178 Sig. (2-tailed) .848 .736 N 6 6

GETA Pearson Correlation .686 .426 Sig. (2-talled) .089 .340 N . - --7 7

•• . Correlation is significant at the 0 .01 level (2-tailed).

• . Cormation is signWicant at tho 0 .05 level (2-tailed) .

R06 TASSET ROE Pearson COIT'Blation 1.000 . 942'

Sig. (2-tailed) .001

N 7 7 TASSEl Peal300 Co<rela1ion .942. 1.000

Sig. (2-tailed) .001 N 7 7

TLTD Peaf$0Jl Correlation -.517 - .654 Sig. (2-tailed) .235 .111 N 7 7

TLTA Pearson Co<relation -.473 -.638 Sig. (2-tailed) .284 .123 N 7 7

OENE Pearson Correlation .383 601 Sig. (2-tailed) .453 207

N 6 6 SFTA Pearson Correlation -.776' -.847'

Stg (2-tailed) .040 016 N 7 7

CSDA Pearson Correlation .096 .379 Sill . (2-taiied) .834 .402 N 7 7

IPLTA Pearson Correlation -. \01 -.H8 Sig. (2-ta•led) .848 .736 N 8 6

GETA Pearson Comriation .686 .426 Sill . (2-tailed) 069 .340 N 7 7

" . Comolation is significant at the 0 .01 level (2-tailed) .

•. Correlation i& signifiCant at tho O.OSievel (2-taiied) .

CoHelations TLTD TLTA

. 517 -473

235 264

7 7

-.654 -.636

.111 .123

7 7

1.000 .953'

.001

7 7

.953' 1.000

001

7 7

-.676 -.572

.t40 .236

6 6

.851' .729

.015 .063

7 7

-.568 -.628

.183 .131

7 7

.550 .292

.259 .574

6 6

-.152 .008

.746 .986

7 7

Correlations

TLTD TLTA -.517 -.473

.235 .264

7 7

-.654 -.638

.111 .123

7 7

1.000 .953'

.001

7 7 .9s3· 1.000

.001

7 7

-.676 -.572

.140 236

6 6

651' .729

.015 063

7 7 -.568 -.628

.183 .131

7 7 .550 .. 292

.259 .'s74

6 6

-.152 .008

.746 .986

7 7

166

OENE SFTA CSDA PLTA GETA 383 -776' 098 - 101 ! .666

.453 040 834 848 ! .089

6 7 7

-17: I 7

.601 -647' 379 426

.207 016 .402 736 340

6 7 7 6 7 ... -.676 851' -. 568 .550 - 152

.140 015 183 259 746

6 7 7 6 7 .. -572 729 -.628 .292 .008

.236 063 131 .574 986

6 7 7 6 7

1.000 -.807 .463 -650 -.042

.052 355 .162 .937

6 6 6 6 6

-.807 t 000 -.385 .636 - .427

052 .393 174 .339

6 7 7 6 7

.463 -.385 1 000 -.289 - .519

.355 .393 .579 .232

8 7 7 8 7

-.650 .636 -.289 1.000 -.177

.162 .174 .579 736

6 6 6 6 6

-.042 -.427 - .519 -.177 1000

.937 .339 .232 738

6 7 7 6 7

OENE SFTA CSDA PLTA GETA .383 -.776' .096 -.101 .686 •

.453 .040 834 .646 .089

6 7 7 6 7

.601 - 847' .379 -. 178 .426

.207 016 .402 736 .340

6 7 7 6 7

-.676 .851' -568 550 -. 152

.140 015 .183 .259 746

6 7 7 6 7 -.572 729 -.628 292 .006

236 .063 .131 574 .986

6 7 7 6 7 1000 -.807 463 -650 -042

.052 355 162 937

6 6 6 6 6 . -

-.807 1000 - 385 636 -. 427

.052 393 .174 339

6 7 7 6 7 .463 - 385 1.000 - 269 -.519

.355 393 .579 232 6 7 7 8 7

-.650 .636 -.289 1.000 -. t77

.162 174 579 738

6 6 6 6 6 -.042 -427 -.519 -.177 1.000

.937 339 232 738

6 7 --- I..__ __ 6 7

LEGAL 1M TRANSFER

1.0 ABSTR) It is the light oft (CSCS) occupies procedure in Nig procedure is legal offers a new legaf. of'the capital marl

2.0 INTRO[ One of the reform transfer of shares (C.S.C.S.). The tr Investment and S Commission and . means or system i by Securities and also recognized t Limited was inc• Exchange. It was 14, 1997. rt opel system fortransac

3.0 PROCE. {:E~TRAl,SEC Assignment of st non-time consurr mortgagor, a stat( Securities Clcarir

After the collecti• out investigation mortgagor's stod

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Printed by CHUMF.K VENTURES O!i 2 304 1380

ISBN 978-36813-1-1

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