The Asset Management Corporation of Nigeria (AMCON) has announced Sigma Golf Nigeria Limited and Riverbank Investment Resources Limited (the Sigma Golf – Riverbank consortium) as the new core investors in Keystone Bank Limited.
AMCON said in a statement signed by its Head Corporate Communications, Mr. Jude Nwauzor, that the announcement is in relation to the acquisition of the entire issued and fully paid up ordinary shares of the bank by the new investors.
According to the statement, this follows the receipt of the necessary regulatory approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).
The statement reads: “The completion of the Transaction is subject to the fulfillment of the conditions precedent as stated in the Share Sale and Purchase Agreement (“SPA”) executed between AMCON and the Sigma Golf – Riverbank consortium.
“The Sigma Golf – Riverbank consortium is comprised of: Sigma Golf Nigeria Limited and Riverbank Investment Resources, which both are entities set up by local investors.”
It said the process started with interest shown by 18 parties cutting across local and international investors.
There has been a lot of controversies trailing the sale of Keystone Bank, previously known as Bank PHB. The bank is among the three banks nationalised by the CBN in 2011, after failing a stress test conducted by the apex bank.
Last year when the other two nationalized banks, Mainstreet Bank and Enterprise Bank were sold, Keystone Bank could not be sold following allegations that AMCON was believed to be acting in breach of extant takeover provisions. It was also alleged that AMCON, had then concluded plans to hand over Keystone Bank to a coalition of powerful Northern interests, while disregarding extant takeover provisions of AMCON in the process.
But AMCON in the announcement on Monday said the emergence of the Sigma Golf – Riverbank consortium resulted from a rigorous and competitive bidding process, which was coordinated for AMCON by Citibank Nigeria Limited and its affiliates and FBN Capital which served as Joint Financial Advisers with Banwo & Ighodalo and Crosswrock Law serving as joint Legal Advisers.
Keystone Bank was incorporated by the Nigerian Deposit Insurance Corporation on August 3, 2011 following the revocation of the license of Bank PHB by the CBN.
As of April 2016, Keystone Bank had a staff strength of 1,753 employees, network of 154 branches, nine cash centres and 315 Automated Teller Machines.