AMCON sells Keystone Bank to ‘unknown’ investors

The Asset Management Corporation of Nigeria (AMCON) has sold Keystone Bank, the former Bank PHB Plc, to a consortium of undisclosed local investors under two firms- Sigma Golf Nigeria Limited and Riverbank Investment Resources.

A global search on the two firms did not reveal any existing profile or transaction beyond the deal with AMCON on the Keystone Bank transaction.

In a statement, AMCON stated that the consortium of Sigma Golf Nigeria Limited and Riverbank Investment Resources were made of local investors. The corporation however did not disclose the identities of the local investors.

Further searches by Ripples Nigeria, however, reveal that some very influential business and political interests from the northern part of the country might be behind the successful take-over of the once distressed bank.

Reliable sources have linked a one-time Vice President who is also said to be interested in the 2019 presidential poll as one of the forces behind the acquisition. Also mentioned is the MD/CEO of Sigma Pensions Limited, Umar Modibbo.

AMCON, however, said the announcement of the new owners followed the receipt of the regulatory approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

AMCON was said to have sold Keystone Bank, which arose from the takeover and nationalization of defunct Bank PHB, for N25 billion, although other details of the deal were not immediately clear. The bank’s assets were at the last time estimated at N318 billion.

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The audited financial statement of the bank for the period ended June 30, 2015 showed that Keystone Bank had total assets of N317.6 billion, customer loans of N98.2 billion, customer deposits of N245 billion and total equity of N18.9 billion.

As at April 2016, Keystone Bank had staff strength of 1,753 employees, network of 154 branches, 9 cash centres and 315 Automated Teller Machines.

The statement read: “The Asset Management Corporation of Nigeria is pleased to announce Sigma Golf Nigeria Limited and Riverbank Investment Resources Limited (the Sigma Golf – Riverbank consortium) as the new investors in relation to the acquisition of the entire issued and fully paid up ordinary shares of Keystone Bank Limited.”

It added that the completion of the transaction was subject to the fulfillment of the conditions precedent as stated in the Share Sale and Purchase Agreement executed between AMCON and the Sigma Golf – Riverbank consortium.

“This process started with interest shown by 18 parties cutting across local and international investors. 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 and its affiliates and FBN Capital (Joint Financial Advisers), and Banwo & Ighodalo and Crosswrock Law (Joint Legal Advisers),” AMCON said.

Keystone Bank was incorporated by the NDIC on August 3, 2011. AMCON subsequently capitalized Keystone Bank and appointed a Board of Directors and Executive Management team to lead the Bank.

Keystone Bank Limited is the last of the three bridged lenders bought by the AMCON after the CBN found the lender’s capital adequacy position below regulatory standard.

The other two – Enterprise Bank Limited and Mainstreet Bank Limited – were acquired by Heritage Bank Limited and Skye Bank Plc.

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