Six months after the nationalisation of three banks that were unable to meet the recapitalisation deadline set by the Central Bank of Nigeria , the Asset management Company of Nigeria has set in motion the process for their sale to prospective investors. The affected banks are Mainstreet Bank (former Afribank Plc), Keystone Bank (Bank PHB Plc) and Enterprise Bank (Spring Bank Plc).
Their licences were revoked by the CBN, because they could not meet the deadline for recapitalisation of rescued banks. AMCON subsequently injected N679 billion into the three banks, to bring them to the right capital adequacy levels and strengthen them to meet their obligations to depositors.
However, AMCON, the major shareholder of the affected banks, in line with its resolve to accelerate the transfer of ownership of the banks into private hands last week began a process which it said would eventually lead to the sale of the three banks.
Managing director, AMCON, Mr. Mustafa Chike-Obi confirmed to THISDAY that the process will begin with advertisement for advisers to manage the process which will lead to the sale of the banks at the end of the day. Obi said, it is not in the power of AMCON to determine the direction of the process, explaining however that what the company planned to do was to engage the services of advisers who will provide advisory services for the sale of the three banks.
When THISDAY sought to know the criteria to be used for the selection of potential investors, Chike-Obi said it is not the prerogative of AMCON to set the standards, adding that the determination of the criteria to be adopted lies with the committee.
“We are not at the investor stage yet. I cannot really say these are the criteria to be adopted. What happens if the advisers ask us not to sell the bank yet?†he enquired.
Industry watchers said the resolve of AMCON to speed up the resolution of the issues of the three nationalised banks was largely necessitated by the determination to bring to a closure the banking reforms initiated by the CBN, a process which had to be delayed repeatedly.
“The process of selling the nationalised banks will start this month,†Mr. Chike-Obi had said shortly after the Banker’s Committee meeting in Lagos earlier last month. Chike-Obi was quoted as stating that some investors, foreign and local had shown interest in the banks, promising that the exercise would be transparent and a level playing field will be created for all investors.
Already, AMCON is said to have called for an audit of the banks. The essence, a source said, is to ensure that the books of the banks are updated, while at the same time ensuring that corporate governance and best practices are adhered to by the appointed management of the banks.
Speaking on the performance of the three banks, Chike-Obi believes that the affected banks were on the verge of breaking even, adding that they are currently performing very well. “The three banks are doing well now and I can say that we are satisfied with their performance so far,†the AMCON boss said.
On when to expect their first set of quarterly results, he said the banks have bounced back and that the industry should expect them to release their first quarter results in April just like other banks. “When you see banks like Zenith Bank, GTBank and others, you will see these three banks. I expect their results by April when other banks will be making their first quarter results public,†Chike-Obi said.
Source: Thisday/Festus Akanbi and Malachy Agbo
