December 13, 2017

AMCON seeks foreign experts to privatise bridged banks

AMCON seeks foreign experts to privatise bridged banks

The Asset Management Corporation of Nigeria (AMCON) has extended its tentacles abroad

in search of financial and legal experts to assist the Corporation in its bid to ensure a hitch- free privatization of the three bridged banks.
The bridged banks, Keystone Bank Ltd., Enterprise Bank Ltd. and Mainstreet Bank Ltd. are the defunct BankPHB Plc, Spring Bank Plc and Afribank Nigeria Plc respectively which were among other banks rescued by the Central Bank of Nigeria (CBN) last year are now set for privatization amidst fears that the exercise could run into stormy water.
The worry arises from some issues raised by a think tank group comprising top officials of AMCON, a select group of financial advisers and stockbrokers, which could pose a threat to the smooth privatization of the affected banks.
Issues such as how to recapitalise the banks, who the new owners would be, what to do with the original owners of the banks, feature at the regular meetings of the group chaired by the AMCON managing Director, Mr. Mustapha Chike-Obi.
Daily Independent gathered that the Corporation extended its search for legal and financial experts abroad to countries such as those in Europe and America where the top hierarchy of AMCON officials made exploits in privatization of similar enterprises prior to their return to the Nigeria.
It was gathered that the privatization exercise of the three banks has been put on hold until this team of experts mandated by AMCON to study all the ramifications of the planned privatization, offer professional opinion on the matter.
The all out consultation approach, it was learnt, stemmed from fresh concerns about possible litigations which had earlier rocked the exercise if it should proceed as hitherto, planned.

Headquarters of the Central Bank of Nigeria in...

Headquarters of the Central Bank of Nigeria in Abuja, Nigeria (Photo credit: Wikipedia)

Recently, a Federal High Court in Lagos dismissed the suit filed by some aggrieved shareholders of the defunct Afribank, Spring Bank and Bank PHB who have been kicking against the forceful take-over of their banks by the CBN and AMCON.


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