Monday, 3 November 2014

Skye Bank pays N100b to complete acquisition of Mainstreet Bank

Skye Bank Plc at the weekend paid the 80 per cent balance for Mainstreet Bank’s shares, beating today’s deadline.
Assets Management Corporation of Nigeria (AMCON) and investment banking industry sources confirmed the payment and the completion of the acquisition.

Sources said Skye Bank paid N100 billion to AMCON on Friday as balance for the acquisition, which was valued at N120 billion.
Skye Bank, on October 9, paid the mandatory deposit of 20 per cent for the acquisition,  a deal that was valued at between N120 billion and N126 billion. The differential in the value was due to the variation in the exchange rate base used by the various sources for the dollar-based value of the deal.
The payment of the 80 per cent balance has fulfilled the terms of the Share Sale and Purchase Agreement signed by AMCON and Skye Bank.
With the payment, Skye Bank Plc has completed one of the biggest acquisitions in Nigeria, a deal which also leapfrogged Skye Bank as one of the biggest and largest banks in terms of branch network.
Mainstreet Bank has nine subsidiaries and a large distribution network comprising 201 branches across 35  states and the Federal Capital Territory, Abuja. It has nine cash centres and 200 Automated Teller Machines (ATMs).
The management of Skye Bank had said acquisition was one of the bank’s strategic plans for growth, having itself been a product of one of the complex mergers and acquisitions. Skye Bank emerged from the merger and integration of five banks in 2006, following the first phase of the banking consolidation.
The bank said it intends to leverage its wealth of experience from the successful integration of five banks to drive efficiency, increase market share and, ultimately, ramp up stakeholder value from the acquisition of Mainstreet Bank.
The management of Skye Bank has also assured the customers of Mainstreet Bank of excellent service and superior value in the enlarged Skye Bank.
The acquisition will avail the bank of many benefits, including cost leadership, business optimisation, and greater ability to offer business convenience to its teeming retail and commercial customers, with a combined branch network of over 450, across all the states.
Skye Bank, a leading tier 2 Bank, was among the eight banks recently designated as “Systemically Important Banks”, which reflects its industry leadership, strong market share, diverse location spread, and strong brand equity.
Source : Leadership NG


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