Skye Bank To Acquire Mainstreet Bank For N126bn

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.

Investigations 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.