Nigeria-based commercial bank Skye Bank has completed acquisition of Mainstreet Bank from the Asset Management Corporation of Nigeria (AMCON) for N100bn ($602m).
The bank said in a statement that the last tranche of the money comprising 80% balance payment was made to AMCON on 31 October ahead of the 3 November deadline as part of the share sale and purchase agreement earlier signed by the two parties.
Early last month, the bank paid the mandatory deposit of 20% for the acquisition of Mainstreet, which was initially valued at N120bn ($723m) and is claimed to be one of the biggest purchases ever made in the country.
Skye Bank was selected as the preferred bidder for the purchase of Mainstreet Bank following a rigorous bidding exercise that lasted for five months, and involved more than 20 bidders.
The acquisition forms part of Skye Bank’s strategic plan for growth, and makes it one of the biggest and largest banks in the country in terms of branch network.
According to the statement, the acquisition would bring many benefits to the lender, including cost leadership, business optimisation, and greater ability to offer business convenience to its teeming retail and commercial customers, with a combined branch network of more than 450 throughout Nigeria.
Headquartered in Lagos, Nigeria, Mainstreet Bank has nine subsidiaries and a large distribution network comprising 201 branches across 35 states and the Federal Capital Territory, Abuja.
Formed through successful merger and integration of five banks in 2006, Skye Bank is a major financial services provider in West Africa and Central Africa, with subsidiaries in Sierra Leone, the Gambia, the Republic of Guinea, Liberia, Angola and Equatorial Guinea.
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