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.
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