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The Central Bank of Nigeria (CBN) said it followed laid-down regulations in the sale of Polaris Bank Limited. A senior bank functionary said that relevant information and processes involved in the eventual sale of the bank are in the public space. It may be recalled that 100 per cent equity in Polaris Bank was sold to a new core investor- Strategic Capital Investment Limited (SCIL)
The Central Bank of Nigeria (CBN) said it followed laid-down regulations in the sale of Polaris Bank Limited. A senior bank functionary said that relevant information and processes involved in the eventual sale of the bank are in the public space. It may be recalled that 100 per cent equity in Polaris Bank was sold to a new core investor- Strategic Capital Investment Limited (SCIL).
A senior bank official made it clear that the divestment from Polaris Bank was supervised by a Divestment Committee comprising senior representatives of AMCON & CBN and supported by reputable legal and financial advisers. Also, the sale of equity had received requisite board and regulatory approvals.
The bank official also maintained that at no time did any other party make a higher purchase offer than SCIL. Fairview Acquisition Partners had indicated an interest in acquiring two banks, including Polaris Bank, for a total sum of N1.2 trillion. This offer significantly discounted the existing N1.305 trillion debt owed by Polaris Bank to AMCON. Had that deal been clinched, it would have led to a material loss to the Federal Government.
Importantly, the bank official revealed that Fairview Acquisition Partners was invited by the financial advisors, along with 24 other parties to participate in the sale process via the execution of a Non-Disclosure Agreement (NDA), which is the first stage of the process. The financial advisors informed the Committee that Fairview Acquisition Partners neither executed nor returned the NDA despite verbally confirming receipt of the agreement and after follow-up from the financial advisors, he added.
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Following strict evaluation, the promoters of the SCIL emerged as the preferred purchaser, having presented the most comprehensive technical/financial purchase proposal and the highest-rated growth plans for Polaris Bank, the bank official clarified. The SCIL’s binding offer involved an immediate upfront consideration of N50 billion and full responsibility for the debt of N1.305 trillion owed to AMCON, leading to a total purchase consideration of N1.355 trillion.
