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Skye Bank to acquire Mainstreet Bank for N126bn

Skye Bank

Skye Bank

Skye Bank Plc has emerged the preferred bidder
for Mainstreet Bank Limited while Cedar One
Investment Partners Limited and. Fidelity Bank Plc
emerged as the 1st reserve bidder and the 2nd
reserve bidder.
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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