Skye Bank signs agreement for Mainstreet Bank purchase, pays 20% deposit

Skye Bank Plc has signed the agreement for the purchase of 100 per cent shares of Mainstreet Bank from the Asset Management Corporation of Nigeria (AMCON). The agreement was signed at the Lagos office of AMCON last Wednesday.

The bank’s  team, led by its Group Managing Director and Chief Executive Officer, Mr. Timothy Oguntayo, signed on behalf of the bank, while AMCON was represented by its executive management.

It was also gathered that Skye Bank had paid the mandatory deposit of 20 per cent for the acquisition.

A statement  from the bank said the payment, made well ahead of the deadline, confirmed its commitment and ability to consummate the transaction, while the bank has also confirmed its ability to meet the remaining financial obligation on the acquisition within the specified time frame.

Recall that AMCON last weekend announced Skye Bank as the preferred bidder for the acquisition of  its stake in Mainstreet Bank, representing the entire capital of the bridge bank. Skye Bank emerged the preferred bidder after a rigorous bidding exercise that spanned five months, with over 20 bidders contending.

The acquisition of Mainstreet Bank is part of Skye Bank’s strategic plan for growth.

The statement adds that Skye Bank, which emerged from the merger and integration of five banks in 2006, intends to leverage its wealth of experience from the successful integration of five banks to drive efficiency, increase market share and ultimately ramp up stakeholder value from the acquisition of Mainstreet Bank.

“The acquisition will avail Skye Bank many benefits, including cost leadership, business optimisation and greater ability to offer business convenience to its teeming retail and commercial customers, with a combined branch network of over 450, across all the states of the federation”, the bank said in the statement.


Source : SunOnline

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