Tag Archives: Keystone Bank

New investor, Sigma Golf-Riverbank consortium takes over Keystone Bank

Posted on by
1

The Sigma Golf-Riverbank consortium, the new investor that acquired Keystone Bank Limited from the Asset Management Corporation of Nigeria, AMCON, has taken control of the financial institution.

The new investors pledged to reposition the bank on a growth path with immediate effect, a statement made available to PREMIUM TIMES on Sunday said.

AMCON had recently announced Sigma Golf Nigeria Limited and Riverbank Investment Resources Limited as the new owners of the bank.

The announcement came amid controversies surrounding the sale of the bank, with AMCON alleged to be acting in
breach of extant takeover provisions.

PREMIUM TIMES had exclusively reported that some senior officials of AMCON voiced strong opposition to the planned sale of the bank.

The disturbed officials specifically alleged that Ahmed Kuru, the chairman of AMCON, had concluded plans to hand over Keystone to a coalition of powerful Northern interests, while disregarding extant takeover provisions of AMCON in the process.

PREMIUM TIMES investigations in November 2016 had revealed that Sigma Pensions Limited, a firm linked to former Vice President Atiku Abubakar and Umar Modibbo, might emerge the new owner of Keystone Bank with its nearly 160 branches.

The two influential Nigerians were allegedly being represented by the firm which our sources said did not participate in the bidding process, in a clear contradiction of basic public asset sale requirements.

But Paul Ibe, Mr. Atiku’s spokesperson, however, denied his principal’s involvement in the said deal.

Meanwhile, a statement from Keystone Bank said the completion of the takeover process was held last Thursday with representatives of Sigma Golf-Riverbank consortium; AMCON management; the board and management
of Keystone Bank; the advisers to the buyer (KPMG Professional Services, Boston Advisory Services, Giwa Osagie & Co., and Pan-African Capital Limited); as well as those of the seller (FBN Capital Limited, Citibank Nigeria Limited, Banwo & Ighodalo, and CrosswrockLaw).

The completion meeting signified the effective handover of the bank to the buyer and the commencement of a transition process that will culminate in the reconstitution of the board and management of the bank to reflect the new ownership.

Keystone Bank was taken over by AMCON in 2011 and was until the sale managed by the AMCON appointed board and management that stabilised the bank to make it attractive as a potential target for eventual acquisition by the investors.

While announcing the new investors last week, AMCON had said that the Sigma Golf-Riverbank consortium emerged the preferred bidders after a very transparent and competitive bidding process.

“The emergence of the Sigma Golf-Riverbank consortium will bring a new lease of life with the expected injection of fresh capital that would position the bank to play competitively in the banking space and actualise its full potential,” it said.

“In moving the bank forward as a major player in the industry, the new investors will be backed up by a pool of reputable professionals both currently within the bank and across the industry.

“Keystone Bank therefore assures all its stakeholders that the transition process will reposition the bank to serve its customers better, creating enhanced value for all stakeholders,” it added.

Just In: AMCON names new buyers of Keystone Bank

Posted on by
20

The Asset Management Corporation of Nigeria, AMCON, has announced Sigma Golf
Nigeria Limited and Riverbank Investment Resources Limited (the Sigma Golf-Riverbank Consortium) as the new investors in Keystone Bank.

The announcement came amid controversies surrounding the sale of the bank, with AMCON alleged to be acting in breach of extant takeover provisions.

AMCON, in a statement on Monday, said the announcement is in relation to the acquisition of the entire issued and fully paid up ordinary shares of the bank.

This, AMCON said, follows the receipt of the necessary regulatory approvals from the Central Bank of Nigeria, CBN, and the Securities and Exchange Commission, SEC.

The completion of the transaction is subject to the fulfilment of the
conditions precedent as stated in the Share Sale and Purchase Agreement executed between AMCON and the consortium, the corporation added.

Earlier in November 2016, some senior officials of AMCON had voiced strong opposition to the planned sale of Keystone Bank Ltd.

The disturbed officials specifically alleged that Ahmed Kuru, the chairman of AMCON, had concluded plans to hand over Keystone to a coalition of powerful Northern interests, while disregarding extant takeover provisions of AMCON in the process.

PREMIUM TIMES had gathered that Sigma Pensions Limited, a firm linked to former Vice President Atiku Abubakar and Umar Modibbo, might emerge the new owner of Keystone Bank with its nearly 160 branches.

The two influential Nigerians were allegedly being represented by the
firm which our sources said did not participate in the bidding process, in a clear contradiction of basic public asset sale requirements.

After a commercial was placed for the bidding process by AMCON, 13 companies had submitted their expression of interests but the companies did not include the firm which AMCON was set to sell the bank to.

PREMIUM TIMES findings revealed that the deal could also see Nigerian taxpayers lose billions of naira if allowed to stand. This is because AMCON was reportedly in talks to sell the bank for about N2.1 billion, representing only a fraction of the approximately N100 billion that AMCON paid to purchase the bank’s bad debts in 2011.

Findings also indicated that some of the companies that participated in the bidding process offered more than the amount and had core banking expertise.

The Keystone Bank, previously known as Bank PHB, was among the three banks nationalised by the CBN in 2011, after failing a stress test conducted by the apex bank.

The top AMCON officials, who spoke strictly on the condition of anonymity, said Mr. Kuru sidestepped laid down requirements for asset sale to ensure Keystone is ceded to his cronies.

“It is very clear that all caution was thrown to the wind as a result of a grand plan to disqualify very strong and reputable intended buyers in order to allow the cronies and business associates of the Managing Director take over the bank,” a senior AMCON official had said.

They had also disclosed that, since the opinions being widely held across the country were that the president had a sectional agenda, the outcome of the sale would put the conjectures to test.

“It is an open secret within the banking sector in Nigeria that the sale was arranged for this powerful northern group whose promoters do not have the required banking experience, thereby raising questions about the supposed independence of the international advisers of AMCON in the sale of Keystone,” one official had said.

When contacted in November, Mr. Atiku’s spokesperson, Paul Ibe, had said he had no prior knowledge of his principal’s involvement in the controversial transaction, but still suggested that the opposition to his principal’s role by some AMCON officials might have been politically-motivated.

“I am not aware if his Excellency is interested or is involved in Keystone Bank. But even if he is, does that disqualify him? Is it because he’s a former Vice President and an APC chieftain? Hasn’t he run businesses successfully? Created jobs? Delivered dividends to shareholders? Paid taxes?

“Who are those internally? Who are the people? Is it politicians who are mischief makers hiding under the cover of internal people?” Mr. Ibe had said.?

But AMCON, in its statement on Monday, said the emergence of the Sigma
Golf-Riverbank Consortium resulted from a rigorous and competitive bidding process, which was coordinated for AMCON by Citibank Nigeria Limited, its affiliates and FBN Capital (joint financial advisers), and Banwo & Ighodalo, and Crosswrock Law (joint legal advisers).

Sigma Golf Nigeria Limited and Riverbank Investment Resources, the corporation stated, were entities set up by local investors, adding that the process for the sale of the bank started with interest shown by 18 parties cutting across local and international investors.

Keystone Bank was incorporated by the Nigerian Deposit Insurance Corporation on August 3, 2011 following the revocation of the license of Bank PHB by the CBN.

As of April 2016, Keystone Bank had a staff strength of 1,753 employees, network of 154 branches, nine cash centres and 315 Automated Teller Machines.

 

Source: Premium Times

AMCON plans to sell Keystone Bank to ‘powerful northern group’, officials say.

Posted on by
1

Some senior officials of the Asset Management Corporation of Nigeria are voicing strong opposition to the planned sale of Keystone Bank Ltd., PREMIUM TIMES can report.

The disquiet comes as the state-owned asset management company is set to announce new owners for the bank, which is the last of the three nationalised financial institutions yet to be sold, PREMIUM TIMES learnt.

The disturbed officials say Ahmed Kuru, the chairman of AMCON, has concluded plans to hand over Keystone to a coalition of powerful Northern interests, disregarding extant takeover provisions of AMCON in the process.

Barring any last minute changes, a firm linked to former Vice President Atiku Abubakar and Umar Modibbo, MD/CEO of Sigma Pensions Limited, may emerge the new owner of Keystone Bank with its nearly 160 branches, PREMIUM TIMES understands.

The two influential Nigerians are allegedly being represented by the firm which our sources said did not participate in the bidding process, in a clear contradiction of basic public asset sale requirements.

Following a commercial placed for the bidding process by AMCON, 13 companies submitted their expression of interests. These did not include the firm which AMCON is now set to sell the bank to.

The deal could also see Nigerian taxpayers lose billions of naira if allowed to stand. This is because AMCON is reportedly in talks to sell the bank for about N25.1 billion, representing only a fraction of the approximately N200 billion that AMCON paid to purchase the bank’s bad debts in 2011.

This is despite the fact that some of the companies that participated in the bidding process offered more than the amount and had core banking expertise, PREMIUM TIMES learnt.

The Keystone Bank, previously known as Bank PHB, was among the three banks nationalised by the CBN in 2011, after failing failed a stress test conducted by the apex bank.

The two others, Mainstreet and Enterprise Banks, had been handed over to other stronger banks in the industry by AMCON more than a year ago.

The delay in announcing new owners for Keystone, PREMIUM TIMES learnt, is not unconnected with the internal squabbles among the management of AMCON.

The members, who spoke strictly on the condition of anonymity, said Mr. Kuru sidestepped laid down requirements for asset sale to ensure Keystone is ceded to his cronies.

“It is very clear that all caution was thrown to the wind as a result of a grand plan to disqualify very strong and reputable intended buyers in order to allow the cronies and business associates of the Managing Director take over the bank,” a senior AMCON official said.

Mr. Kuru was appointed by President Muhammadu Buhari in August 2015, and the board members said the sale of Keystone could dent the administration’s much-avowed anti-corruption war.

The opinions being widely held across the country that the president has a sectional agenda will also be put to test by the outcome of the sale, a source said.

The concerned officials wondered why AMCON would sell a bank of Keystone’s magnitude to a firm that has no requisite expertise in banking and financial management.

“It is an open secret within the banking sector in Nigeria that the sale was arranged for this powerful northern group whose promoters do not have the required banking experience, thereby raising questions about the supposed independence of the international advisers of AMCON in the sale of Keystone,” one official said.

Mr. Modibbo could not be reached for comments.

The AMCON chairman, Mr. Kuru, was as at the time of publishing yet to respond to an email enquiry sent to him.

Mr. Atiku’s spokesperson, Paul Ibe, said he had no prior knowledge of his principal’s involvement in the controversial transaction, but still suggested that the opposition to his principal’s role by some AMCON officials might have been politically-motivated.

“I am not aware if his Excellency is interested or is involved in Keystone Bank. But even if he is, does that disqualify him? Is it because he’s a former Vice President and an APC chieftain? Hasn’t he run businesses successfully? Created jobs? Delivered dividends to shareholders? Paid taxes?

“Who are those internally? Who are the people? Is it politicians who are mischief makers hiding under the cover of internal people?” Mr. Ibe said.

When told that the sources are actually top officials of AMCON, Mr. Ibe said he would rather take the questions by email. An email forwarded to him was yet to be responded to as at the time of this report.