23 May 2014, Lagos – The Asset Management Corporation of Nigeria, AMCON, has revealed that it has received a total of 25 Expressions of Interest, EOIs, for Mainstreet Bank Limited. AMCON is in the process of divesting its shareholding in the commercial bank.
AMCON owns 100 per cent of the share capital in Mainstreet Bank and other subsidiaries of the bank. According to a letter signed by the Head of Corporate Communications, Strategy and Research of the corporation, Mr. Kayode Lambo, those that submitted EOIs included both local and foreign banks as well as investment groups.
The corporation expressed satisfaction that the number of requests received exceeded its expectations, adding that it was impressed with the profiles of the entities.
It however did not disclose the names of the institutions.
“AMCON hereby announces the successful completion of the EOIs phase of the divestment of its shareholding in Mainstreet Bank. In confirmation of the earlier comment made by the corporation that the timeframe given was adequate for serious interested parties to submit all requested documents, a total of 25 EOIs were received.
“This spanned a diverse group of interest which included local and foreign banks and local and foreign investment groups,” AMCON stated.
But the corporation pointed out that the bidding process has not started. It explained that all successful EOI applicants would be required to submit further information in order to enable the advisers to the transaction perform due diligence on the respective institutions.
Furthermore, it noted that “at the completion of that exercise, the successful applicants will proceed to the next stage which will be the due diligence phase.
“That phase is expected to take four to six weeks after which they will be required to submit their bids.”
AMCON stated that the process for the sale of Mainstreet Bank included a thorough search for reputable advisers who had been engaged.
The financial advisers are Barclays Africa Group Limited and Afrinvest Securities Limited. In addition, Banwo and Ighodalo is the legal adviser to the transaction. Mainstreet Bank as at December 31, 2013, had nine subsidiaries; and a distribution network made up of 201 branches, nine cash centres and 200 Automated Teller Machines.
Based on the consolidated management accounts of the Group as at December 2013, total assets were N330.2 billion and customer deposits were N155.8 billion.
The corporation assured Nigerians and others involved in the deal that it “remains committed to fairness and transparency in the entire process as it looks forward to the next steps in the divestment of its shareholding in Mainstreet Bank.”