THE PROVERBIAL FROG THAT SWALLOWS A COW

“HOLD IT PLEASE!”… 
I exclaimed, as the elevator door was closing up to embark on it’s descent from the 4^th floor to the ground floor (or rather so I thought). The doors soon re-opened to usher me into the cubicle occupied by only a few persons (three precisely). As I quickly raced towards the elevator door, I couldn’t help but wonder why others waiting to take the lift on same floor, were rather reluctant to get in.

“Good morning Gentle Men”… 
I greeted warmly, and in an echoed response

“Morning” 
They answered as it filtered through the air. I began to sweep very quickly through the community I was now a part of in the elevator (as if to profile every single individual), I took note of a posh gentle man; well trimmed, well groomed, totally confident, with a mild smile. He seemed to take the center stage, in a conversation that ensued before I got in, while others listened intently and nodded their heads occasionally in accordance with his comments. It seemed as if they were listening to a teacher, mentor and  guru.

In a matter of seconds, I realized the lift was ascending, rather than descending as I had expected. In shock I exclaimed:

OH! It’s heading up.

and with a subtle but emphatic voice he responds;

Where do you think we are headed? 

Downwards I thought.....  
I responded. and with humor he said;

You are on your own O!

and laughs casually as he exits the lift with his entourage to the MD’s floor.

True to his words, I was now literately all on my own.

As I began to piece the scenario together during my decent to the ground floor, it then dawned on me that I had just met with the Managing Director (M.D) of HERITAGE BANKING COMPANY LIMITED. One exemplary man with a mad faith and vision who in a very short while from now, would soon achieve a monumental feet in the history of the business and financial industry in Nigeria. An act never done before, whereby a start-up company a little over a (1) year in the industry would acquire a formidable giant, and survivor of several mergers and acquisition since 2005. This will soon become : A tale of a proverbial frog that swallows a cow.

Mergers and Acquisitions are no new phenomenon’s in several industries, ranging from banking, pharmaceutical, and automobile industry. These predates back in history to the 19^th century when firms were forced to unite with each other or risk been taken over by bigger firms to foster stronger organizations.

In simple terms, Merger means a consolidation of two or more companies into one single entity to form a stronger corporation, while Acquisition on the other hand occurs when one company, completely takes over another and establishes itself as the new owner of the acquired firm. However as simple as these definitions may appear, the process is a very complex one with several dimensions influencing its outcome.

On the 6th of July 2004, the Central Bank of Nigeria (CBN) implemented a policy on the recapitalization of the banking industry to a 25 billion naira minimum shareholders funds for all Nigerian banks. These financial sector experienced a major tremor that transformed the banking landscape in Nigeria with a program that resulted in a reduction in the number of banks from 89-25 through merger/acquisition involving 76 banks. Enterprise bank, a recapitalized brand of spring bank in 2011, was formed with a consolidation of 6 legacy banks from the 2005 Merger. 

Having been 100% fully acquired by Asset Management Company of Nigeria (AMCON), an arm of the Federal Government of Nigeria, HERITAGE BANKING COMPANY (HBC) emerged as the preferred bidder for the purchase of the said bank with a mandate to pay the sum of 56 billion naira within a given time frame, or loose her place to the reserved bidder (Fidelity Bank Plc). This announcement was one taken with a lot of exuberance and a cause for celebrations, by her highly spirited members of management and staff clinging glasses all day long, toasting to her historical achievement with the choicest of wine finely pressed, and their content emptied as lots of bottles lose their caps.

 

This quantum leap unique in its time, can be likened to a publication in the Forbes Africa May 2014 edition, on how Micheal Gus Attridge a South African  based chattered accountant  and multimillionaire (dollars), transformed a start-up company (Aspen Pharmacare) from a makeshift office to a multibillion dollar company with a net worth of over 11.8 billion dollars. Barely three years into the pharmaceutical business.

Aspen took a big risk; A highly leveraged hostile takeover of South Africa’s oldest pharmaceutical business South African Druggist (SAD) for 227.5 million dollars that changed their business forever with an ever expanding network, in Austrailia, East Africa, and Sub-Saharan Africa including Nigeria.

The Heritage Banking Company is one of a unique brand, a totally 100% customer driven organization reflective in her people, process, and place of operation. An institution that evolved from the defunct Societe Generale Bank of Nigeria (SGBN), with its license acquired from the Central Bank of Nigeria (CBN) by discerning investors with a vision to create a niche in an industry completely saturated by the big spenders, game changers and financial gladiators. A red ocean where men feared to sail, yet one man with the nerves of Steel Mr Ifie Sekibo: (A man of class, A man of style, Built for change) dared to venture with a large heart and unique vision/purpose to redefine the users experience in banking by creating high impact solutions in the financial value chain, thus promoting excellence and delighting her people.

Man of Steel

A dream built on the core values of Service, Performance, Respect, Innovation, Integrity, Tenacity and Excellence. One shared by a tenacious team with a vision to delivering distinctive financial services by building on her legacy of innovation and partnership to create, preserve and transfer wealth across generations.

This is not farfetched from her inherent strides and quantum leap in the industry. It is definitely not a mean feat, to possess a 150 branch network added to her 24 current branch locations.

 
As the days, weeks and months unfold, while she strides to integrate the new addition (Assets and liabilities) into her portfolio that has now transformed her from a regional to a national bank, HBC Limited is certainly one unique company to look out for in the financial industry.

Indeed a Lamb that swallows a Tiger without a sweat, has she not become the tiger herself?  

“For she is no longer a Lamb, but is definitely stronger than a Tiger”.

Akinyemi The Visionary