Polaris Bank: New Investor Takes Over Bank For N50bn

The Central Bank of Nigeria, CBN, has announced the sale of Polaris Bank Ltd to a core investor, Strategic Capital Investment Limited.

Under the share purchase agreement reached with the apex bank and the Asset Management Company of Nigeria,  AMCON, the new investor acquired 100 percent equity in the former bridge bank as the sole owner.

According to a statement issued by Osita Nwanisobi the apex bank Director, Corporate Communications on Thursday, the Godwin Emefiele-led bank said the sale met all regulatory approval including that of President Muhammadu Buhari.

Recall that the House of Representatives had two weeks ago directed the CBN to put the sale on hold until it concludes the investigation on the issue, particularly the allegation that the bank was cheaply sold to the investor.

The bank was said to have been sold for a paltry N50 billion whereas the CBN had already invested over N1.2 trillion in the bank since it transformed from Skye Bank Plc in 2018 after it was taken over by AMCON.

In the statement issued yesterday, the CBN said the sale has now been approved by the House of Representatives.

Apart from meeting all regulatory approval, the new investor, the apex bank has also agreed to pay the sum of N1.31 trillion, being the consideration bonds injected.

The apex bank statement said, “The CBN thus received an immediate return for the value it has created in Polaris Bank during the stabilisation period, as well as ensuring that all funds originally provided to support the intervention are recovered.

“The sale was coordinated by a Divestment Committee (the ‘Committee’) comprising representatives of the CBN and AMCON, and advised by legal and financial consultants. 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 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.”