A Review of the Nigerian Energy Industry

Skye Bank to acquire Mainstreet Bank for N120bn

05 October 2014, Lagos – The Asset Management  Corporation of Nigeria  (AMCON) saturday announced  Skye Bank Plc  as the preferred bidder for  Mainstreet Bank Limited.

Also, the corporation  in a statement signed  by its Head, Corporate  Communications Strategy  and Research, Mr. Kayode  Lambo announced Cedar  One Investment Partners  Limited as the first reserve  bidder and Fidelity Bank  Plc as the second reserve  bidder for the acquisition of  the entire issued and fully  paid up ordinary shares of  Mainstreet Bank Limited.

Skye Bank

Although AMCON did  not disclose the details of  the transaction, a reliable  banking industry source  who is very close to the  deal, told THISDAY that  the winning bid submitted  by Skye Bank for the  acquisition of the bank  that is wholly owned by  AMCON was N120 billion.  The source also revealed  that while Cedar One Investment  Partners Limited  staked N100 billion, Fidelity  Bank submitted a bid of  N88.8 billion.

AMCON in the statement  said the transaction  had been approved by its  board of directors.  It however pointed out  that the completion of the  transaction was subject  to the fulfilment of the  conditions precedent as  stated in the Share Sale and  Purchase Agreement (SPA)  to be executed with Skye  Bank as well as the receipt  of all required regulatory  approvals from the Central  Bank of Nigeria (CBN) and  the Securities and Exchange  Commission (SEC).

But 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 Day

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