( Polaris Bank sold) CBN reveals the new owner and announces the sale

 According to the Central Bank of Nigeria (CBN), the sale of Polaris Bank has been completed. This was revealed by Osita Nwanisobi, Director of Corporate Communications at CBN.

Strategic Capital Investment Limited is the bank's new primary investor, according to Nwanisobi, who also revealed that the CBN and Asset Management Company of Nigeria signed the transaction with SCIL (AMCON).

"Since the Central Bank of Nigeria intervened in 2018 to revoke the license of the former Skye Bank Plc and establish Polaris Bank to take over its assets and some liabilities, Polaris has been operating as a bridge bank. Consideration bonds with a face value of N898 billion (future value of N1.305 trillion) and a 25-year repayment period were put into the bridge bank as part of the CBN intervention. The bank's impending collapse was stopped, its stabilization and recovery were made possible, the depositors' funds were protected, job losses were avoided, and systemic financial stability was preserved.

CBN reveals the new owner and announces the sale of Polaris Bank.

"SCIL has agreed to the conditions of the deal, which include complete repayment of the sum of N1.305 trillion, which represents the consideration bonds invested, and has paid an upfront consideration of N50 billion to purchase 100% of the equity of Polaris Bank. By doing this, the CBN ensured that all the money initially supplied to support the intervention was recovered and got an instant return for the value it had produced in Polaris Bank throughout the stabilization phase.

A Divestment Committee made up of officials of the CBN and AMCON oversaw the transaction while receiving advice from legal and financial advisors. To minimize unfavourable speculative speculation, maintain value, and safeguard the financial system's stability, the Committee carried out a sale procedure by "private treaty," as permitted by Section 34(5) of the AMCON Act. Following the CBN intervention in 2018, parties that had formally shown an interest in purchasing Polaris Bank were asked to submit financial and technical offers as part of the process.

25 pre-qualified interested parties received invitations to submit offers; three (3) of these parties ultimately submitted final acquisition proposals after technical review. After a thorough review of all entries, SCIL was chosen as the top bidder because it offered the most detailed technical and financial purchase proposal and the best development strategies for Polaris Bank.

The CBN Governor, Godwin Emefiele, commented on the deal: "This sale represents the conclusion of a milestone intervention in a vital institution in the Nigerian banking sector by the CBN and AMCON.

"We thank the departing board and management for their crucial contribution to stabilizing the Bank's operations, its balance sheet, and implementing robust governance institutions to address the problems that prompted the intervention since the bridge bank was founded.

"This procedure has given the CBN a once-in-a-lifetime chance to fully recoup its intervention money and advance financial stability and inclusive growth.

We send our best wishes to SCIL as they undertake expansion strategies to construct the bank on solid foundations.

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