Skye Bank to acquire Mainstreet Bank for N126bn on oct
Vanguard investigation revealed that Skye Bank bided N126 billion to acquire the entire issued and fully paid up ordinary shares of the nationalised Bank.
In a statement announcing this development, Kayode Lambo, Head, Corporate Communications Strategy & Research, Asset Management Corpration of Nigeria (AMCON), said, “The Asset Management Corporation of Nigeria (“AMCON” or the “Corporation”) is pleased to announce Skye Bank PLC (“Skye Bank”) as preferred bidder; Cedar One Investment Partners Limited (“Cedar”) as the 1st reserve bidder and Fidelity Bank PLC (“Fidelity Bank”) as the 2nd reserve bidder for the acquisition of the entire issued and fully paid up ordinary shares of Mainstreet Bank Limited (“Mainstreet Bank”) (the “Transaction”). This follows the receipt of the approval of the Board of Directors of AMCON.
The completion of the Transaction is subject to the fulfillment of the conditions precedent as stated in the Share Sale and Purchase Agreement (SPA) to be executed with Skye Bank Plc as well as the receipt of all required regulatory approvals from the Central Bank of Nigeria and the Securities and Exchange Commission. In the event that Skye Bank is unable to complete the Transaction in line with the payment terms and other provisions of the SPA, the SPA entered into with Skye Bank would be terminated and Cedar would become the preferred bidder.
Further, in the event that Cedar is unable to complete the Transaction in line with the payment terms and other provisions of the SPA, Fidelity Bank would become the preferred bidder.
This process started with interest shown by 25 parties cutting across local and international investors. The emergence of Skye Bank, Cedar and Fidelity Bank as preferred, 1st and 2nd reserve bidders, respectively, resulted from a rigorous and competitive bidding process, which was coordinated for AMCON by Barclays Africa Group Limited and Afrinvest West Africa Limited (Financial Advisers) and Banwo & Ighodalo (Legal Advisers).”
To consummate its bid, Skye Bank has to pay 20 percent of its bid figure within 11 days while it must pay the balance of 80 percent within 21 days after making the first payment.
Mainstreet Bank Limited, arose from the ashes of the former Afribank, one of the three banks nationalized and sold to AMCON in 2011. The other two banks were Keystone Bank (offspring of former Bank PHB) and Enterprise Bank (offspring of former Spring Bank).
Last month, AMCON announced Heritage Investment Services Limited (HISL) sponsored by Heritage Bank Limited, as the preferred bidder for Enterprise Bank.
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