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AMCON May Take Keystone, Enterprise and Mainstreet banks Public

By on May 7, 2012

The Managing Director of  the Asset Management Corporation of Nigeria (AMCON), Mustapha Chike-Obi, has disclosed that Keystone, Enterprise and Mainstreet banks may be re-listed (as it were) on the Nigerian Stock Exchange. The former Bank PHB, Spring Bank and Afribank were not recapitalized due to protests from their shareholders who secured judicial orders preventing the inflow of new investors.

Chike-Obi, during the weekend said taking the companies public was a probability as it sought ways to finally sell off the institutions.

He said, “One of the options available to AMCON is to take these institutions public, so that the Nigerian public can have a chance to invest in them. So, we want to look at all the options before we start thinking of who the ultimate investors would be. It is only on the basis of that advice and examination that we come to the best way of selling these banks.

“In the expression of interest on these banks, I think over 20 different bodies – banks and other investors – have expressed interest. We have not got to the stage when we can consider those expressions of interest yet. The process to get there requires: AMCON appointing an adviser that will evaluate and determine the value of the banks, evaluate all the options available to AMCON.”

He added, “We will make sure that there is a transparent process that every Nigerian will look at and say we have done fairly. We don’t want anybody to think that these banks were taken over and handed over to special interests. It must be a very transparent process.

“Secondly, AMCON must get the best returns on its investments. We are not a charity organisation; we want the best returns on investment. Thirdly, it must be done in the interest of the financial system. And that is where the Central Bank of Nigeria (CBN) comes in.

“We must make sure that whoever takes over these banks, ultimately, is fit and proper to run a bank. We must know where their money is coming from and we must know that the management is going to be sound. So, those are the three things that we want to consider. So, until we get there, we are not in the position to seriously look at any investor interest.”