BY MICHAEL EBOH

The Asset Management Corporation, AMCON, yesterday, said it would wind up its operations by the year 2023.

Speaking in an interview in Lagos, Mr. Mustafa Chike-Obi, Managing Director/Chief Executive Officer, AMCON, also disclosed that it will complete the sale of the three nationalised banks — Enterprise Bank, Keystone Bank and Mainstreet Bank — by third quarter of 2014.

Chike-Obi stated that AMCON has begun the sale of the nationalised banks and would ensure that it meets up with the stipulated deadline.

According to him, AMCON will start divesting its shares in the three banks nationalised by the Central Bank of Nigeria, CBN, in the next 30 days, starting with Enterprise Bank.

He said: “We have begun the divestment process. We will announce the process, we will seek approval to endorse the process, principally from the CBN, the Ministry of Finance and others and we expect the conclusion in the third quarter of 2014.
“We are going to divest our interest in the banks and we are looking at getting as much people who are interested in investing in the banks.

He allayed fears that majority of the banks’ staff will lose their jobs when the banks are sold to new owners, saying that it will give preference to investors that will retain majority of the staff.

According to him, AMCON was very concerned about labour, and will move towards the investor who is more inclined to keep the staff.

However, he said, “But all of us, our jobs are always in jeopardy. Nobody’s job is guaranteed, including mine. But we are inclined to favour proposals that will keep the staff rather than proposals that will cut the staff dramatically.”
Chike-Obi added that the Corporation will undertake a gradual wind down of its activities by reducing its presence in the country significantly, starting from its divestment in the nationalised banks.

He added that by the end of 10 years, AMCON’s presence would have been significantly reduced that it would become insignificant in Nigeria by the year 2023.

He noted that its shares in the nationalised banks would be sold on a gradual basis, helping it to reduce its stake in the banks and in the financial system.

AMCON further stated that it intends to retire about N2 trillion of its total of N5.7 trillion bonds in issue in 2013 and 2014, using funds recovered from bad loans owed banks in the country.

The AMCON boss said it has made significant progress in the recovery of bad loans and after the refinancing only the CBN will be holder of its bonds.

He said retiring the N2 trillion worth of bonds will cut its liabilities by 35 per cent, adding that it intended to repay bond holders in December 2013 with cash and liquid instruments.

AMCON was established in 2010 to acquire the non-performing loans of banks in the country, after the CBN intervened in the banking system with the rescue of nine banks.

After its establishment, AMCON bonds valued at N5.7 trillion to absorb bad loans and help recapitalise the banks.