The ownership of Mainstreet Bank Limited has finally been changed from Asset Management Corporation of Nigeria (AMCON) to Skye Bank plc following the successful acquisition of Mainstreet Bank by Skye Bank plc.
Mainstreet Bank, owned by AMCON, assumed the assets and liabilities of Afribank Nigeria plc, which had an epochal beginning as one of the big four banks in Nigeria, since October 20, 1959.
Skye Bank, a leading Tier 2 bank in Nigeria, was among the 8 banks recently designated as ‘systemically important banks’, which reflects its industry leadership, strong market share, diverse location spread, and strong brand equity.
AMCON sold Mainstreet Bank to Skye bank at the rate of N120bn and therefore ceases to be the owner of the bank.
Now that Mainstreet Bank has become part and parcel of Skye Bank’s property, what does it mean to the bank and the economy at large.
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Uju Ogubunka, president, Bank Customers Association of Nigeria (BCAN), see Skye bank as having large portfolio both in terms of asset and liabilities. Its reach has been broadened, giving room for customers to do business with them through their various outlets.
The bank will now try to restructure or reengineer so that it will fit into its corporate identity. There will be a lot of restructuring in terms of human resources. It is good for the economy, he told BusinessDay on phone.
According to him, once the bank fits up, employment will be generated and capacity enhanced.
Speaking through his corporate communication department, after the successful payment of 80 percent balance acquisition deal, Timothy Oguntayo, group managing director/chief executive officer, said “This is a landmark development in our history, and it confirms our commitment to strengthen the Bank and take it to greater heights. Having come so far, we cannot go back, and we must make the investment and our collective efforts at making this a reality, a worthwhile and profitable one.”
Skye Bank on October 31 paid N100bn balance after it paid the mandatory deposit of 20 per cent for the acquisition of the Mainstreet Bank.
AMCON had announced Skye Bank as the preferred bidder for the acquisition of all its interest in Mainstreet Bank, representing the entire capital of the bridge bank. Skye Bank emerged the preferred bidder after a rigorous bidding exercise that spanned five months, with over 20 bidders contending.
With the final payment, Skye Bank plc has completed what industry analysts described as one of the biggest acquisitions ever in the country and becomes one of the biggest and largest banks in the country in terms of branch network.
The acquisition of Mainstreet Bank is part of Skye Bank’s strategic plan for growth.
Skye Bank emerged from the very successful merger and integration of five banks in 2006, following the first phase of the banking industry consolidation. The bank intends to leverage its wealth of experience from the successful integration of five banks to drive efficiency, increase market share and ultimately ramp up stakeholder value from the acquisition of Mainstreet Bank.
The acquisition will avail it of many benefits, including cost leadership, business optimisation, and greater ability to offer business convenience to its teeming retail and commercial customers, with a combined branch network of over 450 across all the states of the federation.
The management of Skye Bank assured the customers of Mainstreet Bank of excellent service and superior value in the enlarged Skye Bank.
HOPE MOSES-ASHIKE
