Skye Bank Wins Bid For Mainstreet Bank

The Assets Management Corporation of Nigeria (AMCON) has named Skye Bank Plc as the preferred bidder for Mainstreet Bank. The bank made the announcement yesterday in a statement issued by its chief of staff, Kayode Lambo.

AMCON had last month announced the investment arm of Heritage Banking Company Limited, HBCL Investment Services Limited as the preferred bidder for Enterprise Bank with Fidelity Bank as the reserved bidder and the transaction is expected to be concluded with the payment of the 80 per cent balance on October 13, 2014.

The bank, in the statement it issued yesterday, 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 issue fully paid up ordinary shares of Mainstreet Bank Limited.”

This follows the receipt of the approval of the board of directors of AMCON. However, 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(CBN) and the Securities and Exchange Commission(SEC).

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 agreement would be terminated and Cedar would become the preferred bidder. Also, should Cedar be unable to complete the transaction in line with the payment terms and other provisions of the SPA, Fidelity Bank would become the preferred bidder.

According to AMCON, the process started with interest shown by 25 parties cutting across local and international investors