October 13, 2014

Skye Bank pays 20% deposit for purchase of Mainstreet Bank


Skye Bank Plc has paid 20 per cent for the purchaseof Mainstreet Bank after signing the agreement for the 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 week.

According to a statement made available to Vanguard, the bank’s executive management team led by the 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 learned that Skye Bank paid the mandatory deposit of 20 per cent for the acquisition of the target Bank. The payment, which was made well ahead of the deadline, confirms Skye Bank’s commitment and ability to consummate the transaction.

The bank has also confirmed its ability to meet the remaining financial commitment on the acquisition within the specified time frame.

AMCON had announced Skye Bank as the preferred bidder for the acquisition of all its interest 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.

It will be recalled that Skye Bank emerged from the very successful merger and integration of five banks in 2006, following the first phase of the banking industry consolidation. The Bank 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 the 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.

Skye Bank, a leading tier 2 Bank in Nigeria, was among the 8 banks recently designated as ‘Systemically Important Banks’, which reflects its industry leadership, strong market share, diverse location spread, and strong brand equity.