Skye Bank emerges winner of Mainstreet Bank

OCTOBER 4, 2014 BY AKINPELU DADA

The Asset Management Corporation of Nigeria has announced Skye Bank Plc as the preferred bidder for Mainstreet Bank Limited.

The corporation also 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.

The announcement confirmed an exclusive report by The PUNCH on September 25 that Skye Bank, Fidelity Bank and a Moroccan bank were among the seven potential buyers shortlisted for the acquisition of Mainstreet Bank.

The announcement, according to a statement made available to our correspondent on Saturday by the Head, Corporate Communications, Strategy and Research, AMCON, Kayode Lambo, followed the receipt of the approval of the Board of Directors of the bad debt manager.

AMCON said in the statement, “The completion of the transaction is subject to the fulfilment of the conditions precedent as stated in the Share Sale and Purchase Agreement 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.”

The process for the sale of Mainstreet Bank started with interest shown by 25 parties cutting across local and international investors.

The emergence of Skye Bank, Cedar and Fidelity Bank as the preferred, first and second reserve bidders, respectively, AMCON noted, resulted from a rigorous and competitive bidding process, which was coordinated for the corporation by Barclays Africa Group Limited and Afrinvest West Africa Limited (financial advisers) and Banwo & Ighodalo (legal advisers).

The latest development came about three weeks after AMCON announced Heritage Bank as the preferred bidder for Enterprise Bank.

The CBN had, on August 5, 2011, revoked the operating licences of Afribank, Spring Bank and Bank PHB, which it said did not show enough capacity and ability for recapitalisation.

http://www.punchng.com/news/skye-bank-emerges-winner-of-mainstreet-bank/

Congrats @ team skye . its long over due. The new MD timothy omotayo TA is really working hard n an achiever.

Front page things...Things really go bam before the year runs out. Oluwa is in charge.

Good for them.

Chai. Why didn't I see this coming.