The Central Bank of Nigeria (CBN) has completed the sales of Polaris Bank to Strategic Capital Investment Limited (SCIL), a new core investor.
In a statement signed by Osita Nwanisobi, Director of Corporate Communications, SCIL has acquired 100% equity in Polaris Bank.
According to the statement, SCIL paid N50 billion to acquire the equity and has accepted the terms of the agreement which include the full repayment of the sum of N1.305 trillion, being the consideration bonds injected into the bridge bank through AMCON, to be repaid over a 25-year period.
Explaining the reasons for the sales, the CBN said it will prevent the imminent collapse of the bank, enable its stabilisation and recovery, protect depositors’ fund, prevent job losses and preserve systemic financial stability.
Commenting on the transaction Mr. Godwin I. Emefiele, Governor of the Central Bank of Nigeria said: “This sale marks the completion of a landmark intervention in a strategic institution in the Nigerian banking sector by the CBN and AMCON.
“We commend the outgoing board and management for their vital role since the bridge bank was established; in stabilising the Bank’s operations, its balance sheet and implementing strong governance structures to address the issues that led to the intervention.
“This process has provided the CBN with an unprecedented opportunity to recover its intervention funds in full and promote financial stability and inclusive growth. We wish SCIL well as they implement growth plans to build the bank from the strong foundations that have been established.”
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.
