CBN Says Polaris New Owner, Strategic Capital Investment Limited, Still Have Over N1 Trillion Balance to Pay
- The Nigerian Central Bank has officially completed the sale of Polaris Bank to a new investor
- The bank has been on the market for months, with 25 companies reportedly showing interest
- Strategic Capital Investment Limited won the race by paying more than N50 billion, but the CBN claims there is a over N1 trillion balance to be paid
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The Central bank of Nigeria (CBN) has revealed that Strategic Capital Investment Limited(SCIL) is now the new owner of Polaris bank.
Legit.ng had reported that SCIL paid over N50 billion to acquire a 100 per cent stake in Polaris Bank.
The amount paid is far below the N1.21 trillion CBN, and Asset Management Corporation of Nigeria (AMCON) said it has poured into the bank to revive it after Skye Bank went under.
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CBN, in a statement by the Director of corporate communications, CBN, Osita Nwanisobi announcing the acquisition of Polaris bank, revealed that the new owner has agreed to cover the money spent, bringing the total amount SCIL will be paying to N1.35 trillion.
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What this means is that the N50 billion is an upfront payment for the acquisition, with Strategic Capital Investment Limited expected to pay a balance of N1.305 trillion
How the deal will work between SCIL and CBN
According to Nwanisobi in the terms of the agreement between CBN and SCIL the sum of N1.305 trillion is to be repaid over a 25-year period.
He quoted CBN’s governor, Godwin Emefiele, saying,
“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.”
How the sale of Polaris bank was made possible
Legit.ng gathered that CBN and AMCON representatives, coordinated the sale, with legal and financial consultants advising during the process.
Part of CBN reads:
“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. In the process, parties who had formally expressed an interest in acquiring Polaris Bank, subsequent to the CBN intervention in 2018, 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.”
What we know about Strategic Capital Investment Limited
So far, information about Strategic Capital Investment Limited is still sketchy.
However, Legit.ng check on the Corporate Affairs Commision shows that the company was registered on six months ago specifically, April 28, 2022.
FG releases names of 19,847 companies that can apply for its contract in 2022
In another report, the federal government produced a list of 19,847 Nigerian firms eligible to bid on ministry contracts.
The list was produced based on companies' compliance with employee pensions and insurance.
The companies listed are from media to health and agriculture and banks, among several others
Source: Legit.ng
