By Ademola Alawiye

Monday, 1 Nov 2010

One of the banks rescued by the Central Bank of Nigeria in last year‘s N620 bail-out, Bank PHB Plc, will name its preferred bidder this week.

According to a Reuters report on Friday, the Central Bank of Nigeria‘s advisers have recommended a preferred bidder to the bank.

The report added that the bank‘s board would meet to consider the proposal this week.

Reuters quoted the source as saying, “There is a preferred bidder but the board needs to consider it, there will be an announcement later this week.”

The bank had said earlier this year that four institutional investors had shown interest in the bank.

The Chairman of the bank, Mr. Kola Abiola, disclosed this at a shareholders‘ interactive session organised by the bank in Lagos.

Abiola said, ”We have received bidding from four institutional investors. We have held several talks with these prospective bidders, and we have streamlined them to two after serious consideration by the board and management of the bank.”

Abiola, who refused to mention the investors, said that the board would take a decision on the bidders soon.

He added, “The next stage is for the bidders to submit their proposals. They have done their evaluation and very soon we will receive their proposals, thereafter, we will take a decision in the banks‘ interest.”

Abiola also said that the bank was in a good position in its recapitalisation plan, adding that the bank would meet the recapitalisation deadline set by the CBN for rescued banks.

Shareholders present at the event urged the board to consider the interest of shareholders when making decisions.

The Chairman, Shareholders Trustees Association, Mr. Mukhtar Mukhtar, said that the shareholders were in support of the recapitalisation process, adding that the shareholders should be considered before taking any decision.

Source; Punch