07.22.2010 

 

Standard Bank Group Ltd, Africa’s largest bank, and two South African rivals may still be interested in buying stakes in distressed Nigerian banks after the sale drew closer this week.According to Bloomberg News, Standard Bank, the Johannesburg-based bank with operations in 17 African countries including Nigeria, is “still part of the process,” spokesman of the bank, Erik Larsen said yesterday.

 

FirstRand Limited and Nedbank Group Limited said they may also be involved in the bidding that has seen a number of local banks such as First Bank and Skye Bank indicating interest. The Asset Management Corporation of Nigeria (AMCON) is said to have the capacity to facilitate the recapitaliSation process of the banks, by buying over their toxic assets.The President, Goodluck Jonathan on July 19 approved the bill creating AMCON, to buy back the bad debt from the 10 banks rescued last year. 

 

While as many as 15 foreign and local companies registered last year to investigate buying stakes, CBN Governor Lamido Sanusi said last month that he expects only three international banks to join private-equity firms and local banks in the bidding.“We are continuing to pursue our options on a number of different fronts, including the CBN process,” an investor relations director at FirstRand, Sam Moss said yesterday. 

 

Nedbank will act in a “supportive role” to Ecobank Transnational Inc. in considering the process, Chief Executive Officer Mike Brown said yesterday. Ecobank, which agreed to cooperate with Nedbank at the end of 2008, already has operations in Nigeria.Nigeria’s banking index rose the most in almost four months when Jonathan signed the AMCON into law.

 

Source:ThisDay