The Central bank of Nigeria (CBN) has revealed that Strategic Capital Investment Limited(SCIL) is now the new owner of Polaris bank. Legit.ng had reported that SCIL paid over N50 billion to acquire a 100 per cent stake in Polaris Bank.
The amount paid is far below the N1.21 trillion CBN, and Asset Management Corporation of Nigeria (AMCON) said it has poured into the bank to revive it after Skye Bank went under.
CBN, in a statement by the Director of corporate communications, CBN, Osita Nwanisobi announcing the acquisition of Polaris bank, revealed that the new owner has agreed to cover the money spent, bringing the total amount SCIL will be paying to N1.35 trillion.
What this means is that the N50 billion is an upfront payment for the acquisition, with Strategic Capital Investment Limited expected to pay a balance of N1.305 trillion .
According to Nwanisobi in the terms of the agreement between CBN and SCIL the sum of N1.305 trillion is to be repaid over a 25-year period.
He quoted CBN’s governor, Godwin Emefiele, saying, “This process has provided the CBN with an unprecedented opportunity to recover its intervention funds in full and promote financial stability and inclusive growth.
CBN and AMCON representatives coordinated the sale, with legal and financial consultants advising during the process.
“We wish SCIL well as they implement growth plans to build the bank from the strong foundations that have been established.”
“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 (3) 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.”