By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-The Asset Management Corporation of Nigeria (AMCON) has announced HBCL Investment Services Limited (HISL) is sponsored by Heritage Bank as the preferred buyer for nationalised bank, Enterprise Bank Limited, AMCON said in a statement late Thursday.
AMCON for about one (1) year now sought bidders to acquire its 100 percent stake in Enterprise Bank, following a $4 billion bailout in 2009 that rescued several Nigerian banks from going under.
The statement signed by Kayode Lambo, head, corporate communications of AMCON said Fidelity Bank emerged as the reserve bidder in the event the first choice Heritage Bank could not meet the transaction as agreed.
According to the Nigeria’s asset management corporation, its decision followed a rigorous and competitive bidding process in which 24 foreign and local bidders had initially showed interest. Citigroup and Nigeria’s Vetiva Capital had acted as advisors for the sale.
“The completion of the transaction is subject to the fulfillment of the conditions precedent as stated in the Share Purchase Agreement that is to be executed between AMCON and HISL. In the event that HISL is unable to complete the transaction in line with the payment terms and other provisions of the SPA, the SPA entered into with HISL would be terminated and Fidelity Bank would become the preferred bidder.
“This process started with interest shown by 24 parties cutting across local and international bidders. The emergence of HISL and Fidelity Bank as the preferred and reserve bidders, respectively resulted from a rigorous and competitive bidding process, which was coordinated for AMCON by Citigroup Global Markets Limited and Vetiva Capital Management Limited (financial advisers) and G. Elias & Co. (legal advisers),” Lambo said.
Enterprise Bank received a license to operate as a commercial bank from the CBN on August 5, 2011. The bank has a capital base of N29.8 billion and an asset base of about N280 billion.
The bank operates via a sizeable distribution network of over 160 branches spread across major markets and commercial centres in Nigeria and with over 177 Automated Teller Machines, 57 cash centres and 2,000 Pint of Sale terminals.
The CBN had through the Nigerian Deposit Insurance Corporation (NDIC), floated Enterprise Bank, Mainstreet Bank and Keystone as three bridge banks to take over the assets and liabilities the affected lenders.
