African lender Ecobank has unveiled its plans to divest a stake in Ecobank Nigeria by the end of 2015 after ending its battle against its former CEO Thierry Tanoh, through an out-of-court settlement.
The sale of Ecobank Nigeria, Ecobank’s biggest subsidiary with $9.4bn of assets, will boost the unit’s capital, said the bank’s current CEO Albert Essien.
Essien said in an interview at the World Economic Forum on Africa: "It will be up to Ecobank’s shareholders if they want to buy equity in the Nigerian business."
The bank may also consider an agreement with Tanoh in 2015 over damages exceeding $35m awarded by West African courts against his former employer.
Essein added: "Although the court process will go on, we will ultimately settle amicably. I cannot stop the court process till we have a settlement. Both options will for now be pursued."
Tanoh left the bank more than a year ago following investigations by regulators regarding allegations of fraud and poor governance while he was CEO.