The buzz on Customs Street now is about the conundrum Skye Bank Plc’s successful bid represents. Investigations now debunk some long-held assumptions about what a successful bid represents and how PLC’s seeking to make such regulated entities should conduct business. Much more importantly are the unanswered questions from a governance and regulatory standpoint.
Our take on the latest personal statements of members of the monetary policy committee (MPC) is that their position has hardened. There is not one suggestion that easing is an option, and the focus has moved to when (not whether) to tighten.
Further to the acquisition of Mainstreet Bank by Skye Bank Plc, it would interest investors to know that the bank would be receiving holdings of 121,375,422 units of the AMCON Series V Bonds (redeemed at par) by the end of this month.
Much in line with our expectations regarding the yield environment as the year ends, there was a significant 0.54% month-over-month (MoM) increase in average yield across tenors in the bond market in comparison with the marginal 0.09% MoM growth in the previous month.
Subsequent to the recent announcement of Skye Bank Plc as the preferred bidder for the acquisition of Mainstreet Bank, the Asset Management Corporation of Nigeria (AMCON) and Skye Bank executed the Sale and Purchase Agreement as well as other required documents to consummate the deal.
Lagos, Nigeria, October 6, 2014 – Skye Bank Plc, one of the fastest growing tier 2 Nigerian Banks, with $7.1 billion in total assets, has been named the preferred bidder for the acquisition of 100% equity stake in Mainstreet Bank, being sold by the Asset Management Corporation of Nigeria (AMCON).