Home Breaking news CBN sells Polaris bank for N50bn after Saving it with N1.2trn.

CBN sells Polaris bank for N50bn after Saving it with N1.2trn.

Polaris bank; CBN; sold; SCIL


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.