Nigeria's Skye Bank completes payment for acquisition of Mainstreet Bank

Nigeria‘s Skye Bank Plc has announced full payment of the remaining 80% balance for its purchase of Mainstreet Bank from the Asset Management Corporation of Nigeria (AMCON). Skype Bank now owns 100% of Mainstreet Bank.

Skype Bank made the last tranche payment to AMCON on Friday, October 31st, ahead of the November 3rd deadline, Skye Bank said in a statement.

Earlier this year, on October 9, 2014, Skye Bank paid the 20% deposit required by AMCON for the acquisition of Mainstreet Bank, with Skye Bank committing to pay the remaining 80% balance by November 3rd.

Skye Bank emerged the preferred bidder after AMCON conducted a five month bidding exercise that involved 20 bidders. Cedar One Investment Partners Limited and Fidelity Bank Plc emerged as the first and second reserve bidders respectively, after the exercise.

Skye Bank, in its present form, is the result of the mergers of five banks in 2006, following the first phase of Nigeria’s banking industry consolidation.

In a statement issued by Skye Bank, the bank’s leadership said it will leverage its experience from the successful merger of five banks on the integration of Mainstreet Bank, to drive efficiency, increase market share, and, ultimately, ramp up stakeholder value.

According to the statement, Skye Bank’s acquisition of Mainstreet Bank creates a number of benefits, including cost leadership, business optimization, and greater ability to offer a higher degree of convenience to retail and commercial customers. With the acquisition of Mainstreet Bank, Skye Bank now has a combined branch network of over 450 locations, covering all 36 states of Nigeria.

AMCON was created in the midst of Nigeria’s 2009 banking crisis to bail out three distressed banks. AMCON created three bridge banks, namely Enterprise Bank, Mainstreet Bank, and Keystone Bank, to assume the assume and liabilities of the distressed banks.

In October 2014, Heritage Bank completed payment for the acquisition of Enterprise Bank. AMCON plans to sell Keystone Bank in 2015.

Source: Nigeria Business News