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AMCON Appoints RenCap and Citi Bank as Advisers for Bridged Banks

By on August 7, 2012

The Asset Management Corporation of Nigeria (AMCON) has appointed Renaissance Capital and CitiBank to act as advisers in the sale of the bridged banks rescued by the government agency.

The three bridged banks are former Bank PHB, Spring Bank and AfriBank, presently known as Keystone Bank, Enterprise Bank and Mainstreet Bank.

Citibank is saddled with the task of valuing Mainstreet Bank, as well as advising AMCON on the sale, whilst Renaissance Capital is responsible for achieving the same with Keystone Bank and Enterprise Bank.

The advisers have between 90 to 180 days to complete their assignments.

AMCON chief, Mustapha Chike-Obi, had earlier disclosed that over 20 different investors had shown interest in the bridged banks, however he had to ensure there was a reasonable price tag established first.

“In the expression of interest on these banks, I think over 20 different bodies – banks and other investors have expressed interest. We have not gotten 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 said few months ago.

“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,” he said.