Consortium Acquire Nigeria’s Keystone Bank

by Ike Obudulu Last updated on April 16th, 2017,

Consortium Acquire Nigeria’s Keystone Bank. The Asset Management Corporation of Nigeria, has announced the acquisition of Keystone Bank Limited , saying it followed the receipt of the regulatory approvals from the Central Bank of Nigeria and the Securities and Exchange Commission. The Sigma Golf-Riverbank consortium was on Monday declared the new owners of Keystone Bank Limited. The Sigma Golf-Riverbank consortium is made up of Sigma Golf Nigeria Limited and Riverbank Investment Resources, both entities set up by local investors. Details of the deal were not immediately clear on Monday night.

The bank’s assets are estimated at N318 billion. It has two international units. Citigroup Inc Nigerian unit and FBNQuest, a unit of FBN Holdings Limited, served as AMCON’s advisers on the sale.
According to AMCON:

“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).”

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

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