31 May 2013

The Asset Management Corporation of Nigeria (AMCON) Thursday revealed that it will appoint financial advisers for the three bridge banks, preparatory to their sale by the middle of next month.

The three banks are Enterprise Bank Limited, Keystone Bank Limited and Mainstreet Bank Limited. The banks are wholly owned by AMCON. The corporation had about a fortnight ago announced that it would commence the process leading to the sale of the banks before the end of June, starting with Enterprise Bank.
The Chief Executive Officer, AMCON, Mr. Mustapha Chike-obi, who disclosed this to Reuters, explained that the financial advisers are expected to manage the sales process. AMCON plans to sell 100 per cent of each of the commercial banks, but was yet to decide on the best way to proceed.

"We have advertised for a financial adviser, who will take charge of the process," Chike-Obi said, adding that the advisers would solicit expressions of interest from prospective investors.
According to him, he expects strong interest in the three banks from local and foreign institutions. He pointed out that South Africa's number two lenders, FirstRand, had informed AMCON of an interest in acquiring Keystone Bank.
FirstRand’s Chief Executive Officer, Sizwe Nxasana had said that the South African lender was keen on buying either Keystone or Mainstreet.

Also Skye Bank recently indicated interest in any of the three banks as its managing director, Mr. Kehinde Durosimi-Etti, disclosed the bank’s intention depending on their valuation.
The corporation had said that the sale of Keystone Bank Limited and Mainstreet Bank Limited would follow sequentially, in order to ensure orderly and transparent transactions. The process, which is expected to be concluded by the third quarter of 2014, AMCON said, would lead to the full divestment of its shares in the three banks.

The corporation acquired the three banks on August 5, 2011, after an intervention by the Nigeria Deposit Insurance Corporation (NDIC) and the CBN. Enterprise Bank was created from the carcass of the defunct Spring Bank while Keystone Bank Limited and Mainstreet Bank Limited were created from the defunct Bank PHB and Afribank respectively.


http://www.thisdaylive.com/articles/bridged-bank-to-get-financial-advisers-in-june/149006/