A new core investor has acquired Polaris Bank Limited as the Central Bank of Nigeria (CBN) on Thursday announced Strategic Capital Investment Limited (SCIL) as the new owner of the bank.
In a statement, the regulatory bank said Strategic Capital Investment Limited (SCIL), the new core investor has deposited upfront consideration of N50 billion to acquire 100 per cent of the equity of Polaris Bank
The statement signed by CBN Director of Corporate Communications Department, Osita Nwanisobi said SCIL has also accepted the terms of the agreement, including the full repayment of the sum of N1.305 trillion intervention fund in the legacy Skye Bank.
The CBN had injected the sum in form of bonds in the Skye Bank before the revocation and transmuting into Polaris Bank. The money was injected into Polaris through the Asset Management Corporation of Nigeria (AMCON) while the new owner is expected to repay the money over a 25-year period.
“The Central Bank of Nigeria (CBN) and the Asset Management Company of Nigeria (AMCON) are pleased to announce the completion of a Share Purchase Agreement (SPA) for the acquisition of 100 per cent of the equity in Polaris Bank by Strategic Capital Investment Limited (‘SCIL’).
“Polaris has been operating as a bridge bank since 2018 when the Central Bank of Nigeria intervened to revoke the licence of the former Skye Bank Plc. and established Polaris Bank to assume its assets and certain liabilities.
“As part of the CBN intervention, consideration bonds with a face value of N898 billion (future value of N1.305 trillion) was injected into the bridge bank through AMCON, to be repaid over a 25-year period.
These actions were taken to prevent the imminent collapse of the bank, enable its stabilisation and recovery, protect depositors’ funds, prevent job losses and preserve systemic financial stability.
“SCIL has paid an upfront consideration of N50 billion to acquire 100 per cent of the equity of Polaris Bank and has accepted the terms of the agreement which include the full repayment of the sum of N1.305 trillion, being the consideration bonds injected.
“The CBN thus received an immediate return for the value it has created in Polaris Bank during the stabilisation period, as well as ensuring that all funds originally provided to support the intervention are recovered.
“The sale was coordinated by a Divestment Committee comprising representatives of the CBN and AMCON, and advised by legal and financial consultants.
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“The Committee conducted a sale process by ‘private treaty,’ as provided in Section 34(5) of the AMCON Act to avoid negative speculations, retain value and preserve financial system stability.
“In the process, parties who had formally expressed an interest in acquiring Polaris Bank, subsequent to the CBN intervention in 2018, were invited to submit financial and technical proposals. Invitations to submit proposals were sent to 25 pre-qualified interested parties, out of which three parties eventually submitted final purchase proposals following technical evaluation.
“All submissions were subject to a rigorous transaction process from which SCIL emerged as the preferred bidder having presented the most comprehensive technical/financial purchase proposal as well as the highest rated growth plans for Polaris Bank,” CBN stated in the statement.
The CBN Governor, Godwin Emefiele, was quoted in the statement as saying that: “This sale marks the completion of a landmark intervention in a strategic institution in the Nigerian banking sector by the CBN and AMCON.