AMCON Seeks Buyers For Mainstreet Bank

[Shola Sholaz]

The Asset Management Company of Nigeria, AMCON, said it was seeking prospective investors to buy 100 percent of its share-holding in Enterprise Bank, the first of Nigeria's three nationalised lenders to be put up for sale.
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"Bad bank" AMCON, which holds non performing assets of troubled banks, in July appointed Citigroup and Africa-focused investment bank, Vetiva Capital to manage the divestment.
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AMCON said in a public notice that prospective buyers will be required to submit their bids by September 20, and show evidence of financing capacity.
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The Central Bank of Nigeria rescued nine lenders in a $4 billion bailout in 2009, after reckless lending and lax governance left them under-capitalised.
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The regulator told them to find new investors before a deadline or face nationalisation. Only six of them met the deadline.
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The others, Afribank, Spring Bank and Bank PHB, were nationalised in 2011.
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AMCON then recapitalised them and changed their names to Mainstreet Bank, Enterprise Bank and Keystone Bank, respectively.
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Based on Enterprise Bank's 2012 audited accounts, the bank had seven subsidiaries, 150 branches with total assets of N263.5 billion ($1.6 billion) and total equity of 31.9 billion naira ($195.3 million), AM-CON said in the notice.