The Central Bank of Nigeria (CBN) has revealed that the acquisition of Polaris Bank by Strategic Capital Investment Limited (SCIL) is worth N1.35 trillion.
In a statement released on Thursday following reports that Strategic Capital Investment Limited acquired Polaris Bank for N50 billion, CBN said that is an upfront payment, and not the total acquisition fee.
Prime Business Africa had reported that the acquisition fee being N50 billion means the CBN sold at a loss of N1.15 trillion, considering that the CBN and Asset Management Corporation of Nigeria (AMCON) had invested as much as N1.21 trillion to rescue Skye Bank (now known as Polaris Bank) when it liquidated in 2018.
READ ALSO: CBN Loses N1.15 trillion In Strategic Capital’s Acquisition Of Polaris Bank
CBN’s Director of Corporate Communications, Osita Nwanisobi, said a full repayment of N1.305 trillion, being the consideration bonds injected, is expected from Strategic Capital Investment Limited as part of the terms of agreement.
The financial regulator said the acquisition enables the apex bank to recover the funds invested in Polaris Bank in the last five years.
“This process has provided the CBN with an unprecedented opportunity to recover its intervention funds in full and promote financial stability and inclusive growth.
“We wish SCIL well as they implement growth plans to build the bank from the strong foundations that have been established.” The statement reads.
Nwanisobi explained that CBN and AMCON representatives, who were grouped into Divestment Committee, coordinated the acquisition of Polaris Bank, with legal advice from attorneys and financial consultants.
He stated, “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.”
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