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Heritage Bank makes initial payment for Enterprise Bank

By on September 21, 2014

In line with the terms for its acquisition of Enterprise Bank Limited, Heritage Bank Limited paid the initial 20 per cent of the bid price, THISDAY learnt.

This is to pave way for Heritage Bank to purchase Enterprise Bank Limited.
According to a reliable source, the Share Purchase Agreement (SPA) was signed between the Asset Management Corporation of Nigeria (AMCON) and Heritage Bank Limited at AMCON’s head office in Lagos.

Heritage Bank was last week announced as the preferred bidder for the bank which is wholly owned by AMCON.

The price for the acquisition of Enterprise Bank was put at N56 billion.
The source revealed that the Heritage Bank team was led to the SPA signing ceremony by the chairman of the bank, Mr. Akinsola Akinfemiwa. Other members of the Heritage Bank team that attended the ceremony, according to the source were the bank’s chief Executive officer, Mr. Ifie Sekibo, its Executive Director, Ivory Bank, Mr. Mary Akpobome and some other executive directors.

Also, representatives from the Financial Advisers to the deal -Citigroup Global Markets Limited and Vetiva Capital Management Limited as well as G. Elias & Co, the Legal Adviser were present.

“The papers were signed today, which signals the acquisition process. I can also confirm to you that a team to implement the transaction has been constituted,” the source revealed.
When contacted on the telephone, AMCON’s Head, Corporate Communications, Kayode Lambo confirmed the signing of the SPA, but declined to comment further.

THISDAY also gathered from another source that AMCON has requested that the transition from Enterprise Bank to Heritage Bank should be done 15 days after the remaining 80 per cent has been paid.

The balance of 80 per cent or N44.8 billion would be paid by October 13.
Heritage Bank commenced operations in March 2013. The deposit money bank was formed from the defunct Societe Generale Bank of Nigeria (SGBN) and was granted a regional banking licence by the Central Bank of Nigeria (CBN).

On commencement of business, its shareholding structure was 80 per cent core investor, nine per cent legacy bank, and 11 per cent of depositors’ funds.

 

[This Day]