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Published On: Sun, Oct 5th, 2014

Mainstreet Bank Acquisition Bid: Skye Bank emerges winner with N120bn

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skye-bankStories from Ngozi Onyeakusi, Lagos

Skye Bank Plc has been announced as the preferred bidder for Mainstreet Bank Limited by the Asset Management Corporation of Nigeria (AMCON).

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

However, AMCON is yet to make known the details of the deal, though a reliable source confirmed that the winning bid submitted by Skye Bank for the acquisition of the bank that is wholly owned by AMCON was N120 billion while that of Cedar One Investment Partners Limited stood at N100 billion and Fidelity Bank N88.8 billion.

The corporation assured that 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.”

 

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