The sale process of Enterprise Bank, one of the bridge lenders, is expected to be concluded by the end of May 2014.
According to Mustafa Chike-Obi, managing director, Asset Management Corporation of Nigeria (AMCON), eight out of the prospective buyers that put up bids will be requested to present their binding offer for the lender.
From the earlier 24 expression of interests, it was pruned to 18 and then the eight that are expected to show commitment through the presentation of the binding offer expected by AMCON on March 6, 2014.
The second bank, Mainstreet, will advertise for financial and legal advisers next week for commencement of the sale process, thereafter, Keystone will now follow.
Chike-Obi assured that different advisers will be appointed for the different banks put up for sale in order to ensure fairness and transparency in the whole process.
The AMCON chief executive, who spoke at the Detail Business Series organised by Detail Commercial Solicitors in Lagos on Thursday, said that the sale process of the three banks is expected to be completed this year.
He revealed that the redemption of the bonds totaling N5.6 trillion with interest provided enough liquidity for the banks to continue in business, but regretted that the bonds are yet to be guaranteed by the Federal Ministry of Finance.
He said that of the N4.6 trillion outstanding, N3.8 of the amount will be for CBN while the remaining one for the third party will be settled by November this year, leaving CBN to emerge as the only creditor to the corporation.
Commenting further on the divestment process, Chike-Obi said the process had to be in sequence beginning with Enterprise Bank due to its small nature so as to engender transparency and openness in the exercise.
He expressed support for the ongoing amendment of the Corporation’s Act, saying that of interest is the need to entrench the contributions by banks and CBN in the Act, adding that the essence is to make it legal and binding and therefore not subject to the whims and caprices of any governor of CBN that emerges.
Besides, he said the amendment will strengthen some aspects of the legal powers for them to enforce recoveries of debts owed the corporation.
Ayuli Kukoyi, lead partner, Detail Commercial Solicitors, had earlier said that the forum was organised to keep the select audience abreast of the activities of AMCON with regards to divestments from the three banks.
