Fresh facts have emerged that First Rand Bank, one of South Africa’s biggest banks, may acquire one of the nationalised banks under the control of the Asset Management Corporation of Nigeria.

The Chief Executive Officer, FirstRand, Mr. Sizwe Nxasana, said during the inauguration of Rand Merchant Bank Nigeria on Thursday that its move to the Nigerian market would afford it the opportunity to enter the retail market.

He said the bank would expand its operations in Nigeria through an acquisition, saying, “We are looking at having a universal banking operation in Nigeria. Our appetite for Nigeria is growing and we are going to be looking at opportunities that will put us in a position where we will be among the top five banks in Nigeria in the next few years.”

FirstRand has been looking for an entry into the country for years. It ended talks last year to buy a majority stake in Sterling Bank Plc after both parties failed to agree on a price.

Nxasana said FirstRand was still interested in acquiring one of  Mainstreet Bank Limited, Keystone Bank  Limited and Enterprise Bank Limited which were nationalised two years ago, but could also enter retail operations on its own.

FirstRand had said in November that it could spend more than $300m to buy a retail and commercial bank in Nigeria.

AMCON had said it had concluded arrangements to sell the three banks it acquired last year to preferred local and foreign investors.

The Managing Director, AMCON, Mr. Mustafa Chike-Obi, had said  at a press conference in Lagos that the banks would be sold during the second quarter of 2014, adding that it was the appropriate time chosen by the company to sell the banks.

According to Chike-Obi, AMCON recorded N2.37tn loss in the current financial year because of the N5.6tn it invested in the three banks to secure depositors’ fund and other public investment in them.

The fund injection into the banks that were ailing at the time of their acquisition was to enable them compete favourably with other healthy banks in the country.

The three bridge banks were created by the Nigerian Deposit Insurance Corporation to take over the assets of the former Afribank Plc, BankPHB Plc and Spring Bank Plc, whose licences were revoked by the Central Bank of Nigeria, for not being able to meet the bank deadline for recapitalisation.

Source: Punch (By Ademola Alawiye)