Heritage Bank-Sponsored HBSL Investment Wins Bid For Enterprise Bank

The Asset Management Corporation of Nigeria on Thursday announced Heritage Bank-sponsored HBSL Investment Services Limited as the preferred bidder for Enterprise Bank. This came over a year after AMCON began the sale process of the nationalised bank. It has be reported that Skye Bank, Fidelity Bank and Heritage Bank were in keen contest to buy the bank, According to Punch.

Enterprise Bank is one of the three nationalised banks created after the 2009 banking crisis, which saw the nationalisation of Afribank Plc, Bank PHB Plc and Spring Bank Plc. The three bridge banks created from the failed banks are Enterprise Bank, Mainstreet Bank and Keystone Bank.

A statement by AMCON confirming the result said Heritage Bank emerged the preferred bidder, while Fidelity Bank was the reserve bidder. The statement signed by the Head, Corporate Communications, Mr. Kayode Lambo, said,

“The Asset Management Corporation of Nigeria is pleased to announce HBCL Investment Services Limited as preferred bidder and Fidelity Bank Plc as reserve bidder for the acquisition of the entire issued and fully paid up ordinary shares of Enterprise Bank Limited. This follows the receipt of the approval of the Board of Directors of AMCON. HISL is sponsored by Heritage Banking Company Limited.”

Lambo said in the event that Heritage Bank was unable to meet the share purchase agreement, Fidelity Bank would become the preferred bidder. “The completion of the transaction is subject to the fulfilment of the conditions precedent as stated in the Share Purchase Agreement that is to be executed between AMCON and HISL. In the event that HISL is unable to complete the transaction in line with the payment terms and other provisions of the SPA, the SPA entered into with HISL would be terminated and Fidelity Bank would become the preferred bidder.

“This process started with interest shown by 24 parties cutting across local and international bidders. The emergence of HISL and Fidelity Bank as the preferred and reserve bidders, respectively resulted from a rigorous and competitive bidding process, which was coordinated for AMCON by Citigroup Global Markets Limited and Vetiva Capital Management Limited (financial advisers) and G. Elias & Co. (legal advisers).”

AMCON is due to announce the preferred bidder for Mainstreet Bank on, or before October 31. The Managing Director, AMCON, Mr. Mustafa Chike-Obi, said Keystone Bank sale would commence later.

Source: Punch