AMCON Seek Advisers On Selling Mainstreet, Enterprise, Keystone Banks

The Chief Executive Officer of Asset Management Company (AMCON), Mustapha Chike-Obi

The Asset Management Company of Nigeria (AMCON) has announced that it will appoint financial advisers by June 15 to manage the sale of Mainstreet Bank, Enterprise Bank and Keystone Bank.

The three banks were nationalised in 2011 following mismanagement of bad loans and recapitalised by AMCON.

AMCON’s Chief Executive Officer, Mustapha Chike-Obi, made this known on Thursday in an interview where he revealed plans to sell 100 percent of each of the bank.

He however added that AMCON is yet to decide on the best way to proceed.

“We have advertised for a financial adviser who will take charge of the process” said Chike-Obi.

He said the advisers would solicit expressions of interest from prospective investors.

Mr Chike-Obi said he expected strong interest in the three banks from local and foreign institutions, pointing out that South Africa’s leading bank, FirstRand, had informed AMCON of an interest in acquiring Keystone bank.

FirstRand CEO Sizwe Nxasana told Reuters last week that the South African lender was keen on buying either Keystone or Mainstreet.

Skye Bank is also expected to bid for one of the three banks, depending on valuations, its CEO Kehinde Durosimi-Etti told a shareholder meeting last week, where management sought approval to raise N50 billion.

AMCON said last week it expected to complete the sales by the third quarter of 2014.

 

S.Africa’s FirstRand eyes retail banking in Nigeria – CEO

South Africa’s FirstRand will use Thursday’s launch of its new merchant banking business in Nigeria as a springboard to move into retail and commercial lending in Africa’s second biggest economy, the bank’s chief said.

South Africa’s number two lender won Nigeria’s first merchant banking license in more than a decade last November and opened its doors in Lagos on Thursday.

Now it wants to expand its operations in Nigeria, organically or through an acquisition, First Rand Chief Executive Sizwe Nxasana told Reuters in Lagos during the launch of Rand Merchant Bank (RMB) Nigeria.

“We are looking at having a universal banking operation in Nigeria … growing on the back of our investment banking operations into the retail and commercial banking,” he said.

“Our appetite for Nigeria is growing and we are going to be looking at opportunities that will put us in a position where we are becoming a seeded player … in other words among the top five banks in Nigeria in the next few years.”

FirstRand has been looking for an entry into Africa’s most populous country for years. It ended talks last year to buy a majority stake in Nigeria’s Sterling Bank after they both failed to agree on price.

Nxasana said FirstRand was still interested in acquiring one of the three banks, Mainstreet Bank, Keystone Bank and Enterprise Bank that were nationalised two years ago, but could also enter retail operations on its own.

FirstRand in November had said it could spend more than $300 million to buy a retail and commercial bank in Nigeria.

South African company in talks to buy Dangote flour

South Africa’s biggest consumer foods maker Tiger Brands said on Monday it is in talks with Dangote Industries over the Nigerian conglomerate’s stake in its flour milling unit.

The talks come amid reports that Tiger Brands is bidding for an 80 percent stake in Dangote Flour Mills, which makes pasta and flour in Africa’s most populous country.

Shares in Dangote Flour Mill jumped 4.64 percent to N4.96 by 2:56PM, their highest level in more than six weeks.

Tiger Brands was little changed at 288.21 rand.

Johannesburg-based Tiger Brands did not give further details, saying developments would be reported to shareholders.

Buying all or part of Dangote Flour Mills would give the maker of bread, breakfast cereal and energy drinks a substantial presence in the Nigerian food market.

Dangote has the milling capacity of 4,800 metric tons per day, producing wheat flour, confectionery flour, bread flour and pasta semolina

Banking and company sources told Reuters that Tiger Brands has already done a due diligence and FirstRand’s investment arm Rand Merchant Bank is its advisor.