AMCON assures of fairness in sales of Mainstreet Bank

TO ensure fairness and transparency in the divestment process of Mainstreet Bank Limited being implemented by Assets Management Corporation of Nigeria (AMCON), the Corporation has selected reputable world-class firms, Barclays/Afrinvest Consortium and Banwo & Ighodalo, as financial and legal advisers.

  Also, the Central Bank of Nigeria (CBN) Governor-designate, which is critical in granting regulatory approval for the eventual acquirer, is also being fully briefed on the issue with the view to ensuring a seamless divestment process.
  AMCON’s Chief Communications Officer, Kayode Lambo, revealed this development yesterday in reaction to the reported investors’ concerns on the Corporation’s timelines for sale of Mainstreet Bank.

  According to Lambo, with regards to the on-going divestment exercise of Mainstreet Bank, interested bidders were only invited to submit their expression of interest within 9 days of the publication of the invitation in the acquisition of AMCON’s shareholding in Mainstreet Bank Limited.

  The number of days required to submit an expression of interest, he said, is more than adequate for any serious buyer to respond with the required basic information of the entity interested to be admitted into the process, as well as their reasons and basis for the interest. 

  AMCON further said that bidders at this stage are neither required to conduct any due diligence on Mainstreet Bank nor are they required to provide any indication of valuation or pricing.

  The information requested from bidders are simple and basic details about their company’s history, experience, ownership and other general information that will enable the advisers send further information to eligible investors.

  The sale of a bank, he said, is a standardised practice all over the world and at a latter stage, qualified bidders will have the opportunity to submit offers under a Request For Proposal (REP), and thereafter conduct due diligence exercise on the bank, which is expected to take a longer time.

  “The current EOI phase is an initial stage in which basic information is required from intending bidders for simple reason of knowing the entities interested, while the whole divestment process, which is done in stages, is expected to take a minimum of four months”, he added.

Source: Guardian Newspaper

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