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Sunday, 2 November 2014

SKYE BANK COMPLETES PAYMENT FOR MAINSTREET ACQUISITION



                              QUEUE AT AUTOMATIC TELLER MACHINES (ATM)  AT IKORODU IN LAGOS
Skye Bank Plc has completed the purchase of 100 per cent shares of Mainstreet Bank from the Asset Management Corporation of Nigeria (AMCON). The last tranche of the money for Mainstreet Bank acquisition was paid to AMCON on Friday, October 31 ahead of the November 3 deadline.

Meanwhile The 80 per cent balance payment was made to AMCON in fulfillment of the Share Sale and Purchase Agreement earlier signed by both AMCON and Skye Bank.
Skye Bank had on October 9, 2014, paid the mandatory deposit of 20 per cent for the acquisition of the target Bank, with a pledge to complete the 80 per cent balance payment within the agreed time frame.
AMCON had announced Skye Bank as the preferred bidder for the acquisition of all its interest in Mainstreet Bank, representing the entire capital of the bridge bank. Skye Bank emerged the preferred bidder after a rigorous bidding exercise that spanned five months, with over 20 bidders contending.
With the final payment, Skye Bank Plc has completed what industry analysts described as one of the biggest acquisitions ever in the country and becomes one of the biggest and largest banks in the country in terms of branch network.
The acquisition of Mainstreet Bank is part of Skye Bank’s strategic plan for growth. Skye Bank emerged from the very successful merger and integration of five banks in 2006, following the first phase of the banking industry consolidation. The Bank 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 acquisition will avail it many of 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 of the Federation.
Skye Bank, a leading tier 2 Bank in Nigeria, was among the 8 banks recently designated as ‘Systemically Important Banks’, which reflects its industry leadership, strong market share, diverse location spread, and strong brand equity.
The management of Skye Bank assured the customers of Mainstreet Bank of excellent service and superior value in the enlarged Skye Bank

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