The central bank of Nigeria (CBN) and asset Management company of Nigeria (Amcon)
has officially announced the completion on share Purchase Agreement (SPA) acquisition
all equity in Polaris Bank by Strategic Capital Investment Limited (‘SCIL’).
This deal got the approval of the federal House of Representatives. The House of
Representatives on Wednesday October 19,2022 sanctioned the sale of Polaris Bank and
affirmed that the acquisition followed laid down procedures and got the relevant
presidential approval.
In a statement released by the the director, corporate administration department of the
central bank of Nigeria on behalf of CBN and AMCON states that SCIL has completed and
upfront payment of 50 million In order to acquire 100% of Polaris bank and also agreeing
to the terms and condition include the full repayment of the sum of N1.305 trillion, being
the consideration bonds injected.
According to the statement, “the CBN thus received an immediate return for the value it
has created in Polaris Bank during the stabilization period, as well as ensuring that all
funds originally provided to support the intervention are recovered.
“The sale was coordinated by a Divestment Committee (the ‘Committee’) comprising
representatives of the CBN and AMCON, and advised by legal and financial consultants.
The Committee conducted a sale process by ‘private treaty’, as provided in Section 34(5)
of the AMCON Act to avoid negative speculations, retain value and preserve financial system stability.
“In the process, parties who had formally expressed an interest in acquiring Polaris Bank,
subsequent to the CBN intervention in 2018, were invited to submit financial and technical
proposals. Invitations to submit proposals were sent to 25 pre-qualified interested parties,
out of which three (3) parties eventually submitted final purchase proposals following
technical evaluation.
“All submissions were subject to a rigorous transaction process from which SCIL emerged
as the preferred bidder having presented the most comprehensive technical/financial
purchase proposal as well as the highest rated growth plans for Polaris Bank,” the
statement added.
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