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AMCON finally transfers Mainstreet, Enterprise to Skye, Heritage Banks

By BusinessNews Staff on January 29, 2015

The Asset Management Corporation of Nigeria (AMCON) on Tuesday officially transferred the ownership of Mainstreet Bank Limited and Enterprise Bank Limited to their new owners, Skye Bank Plc and Heritage Bank Limited, respectively.
At the divestment ceremony held in Lagos, the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, warned against a reoccurrence of the factors which led to the takeover of the three bridged banks.

He, however, commended AMCON and the interim management of the Enterprise and Mainstreet banks for taking up the responsibility of assisting the CBN to stabilise the bridged banks and restoring them to good financial health.

According to him, if the bridge bank option had not been adopted in 2011, the systemic crisis in the banking system might have been unprecedented and costly in terms of its effects on the banking industry.

“I thank those who acquired the banks and I wish them well. That kind of thing that happened in the banking sector is not what you wish for a second time. I believe that we have all learnt from the process and I believe that Nigerian banks have learnt from that process,” he added.
On his part, the Managing Director/Chief Executive Officer, AMCON, Mr. Mustapha Chike-Obi, reiterated that the corporation followed due process in the sale of the banks.

“Both Enterprise and Mainstreet Banks returned to profitability very quickly and that was based on the work the management did. This is a very happy moment for us. We have not finished, we have one more bank to go,” he added.

Also, the Chairman of AMCON, Alhaji Kola Belgore, disclosed that the bridged banks had been restored to financial solvency, stating that Mainstreet Bank’s profit at the end of December 2014 stood at N13 billion, while Enterprise Bank recorded a profit of N3 billion.

Speaking at the event, the Managing Director of Heritage Bank, Mr. Ifie Sekibo, assured stakeholders of value from the transaction at the end of the year.

The Group Managing Director of Skye Bank, Mr. Timothy Oguntayo, said the bank saw value and synergies in the acquired bank and promised to harness and optimise the value.

AMCON had announced both Skye Bank and Heritage Bank as the preffered bidders for Mainstreet Bank and Enterprise Bank respectively in the last quarter of 2014. Both banks had since completed the payments for the 100 per cent shares of the two acquired banks, and are currently conducting a process for seamless integration

[ThisDay]

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