The Central Bank of Nigeria (CBN) has announced the sale of Polaris Bank to a new core investor, Strategic Capital Investment Ltd (SCIL).
A statement signed by the apex bank’s Director of Corporate Communications, Osita Nwanisobi, on Thursday said the sale was concluded after a Share Purchase Agreement (SPA) for the acquisition of 100 percent equity in Polaris Bank.
The bank has been operating as a bridge bank since 2018 when the CBN intervened and revoked the license of the former Skye Bank Plc.
It then established Polaris Bank to assume its assets and certain liabilities.
As part of the CBN intervention, consideration bonds with a face value of N898 billion (future value of N1.305 trillion) were injected into the bridge bank through the Asset Management Company of Nigeria (AMCON), to be repaid over 25 years.
SCIL paid an upfront consideration of N50 billion to acquire 100 percent equity in Polaris Bank, and also agreed to repay the N1.305 trillion consideration bonds injected.
“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 CBN said.
Parties that formally expressed an interest in acquiring Polaris Bank 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 CBN added.
