25 Firms Invited For Polaris Bank Sale-CBN

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25 Firms Invited For Polaris Bank Sale-CBN
25 Firms Invited For Polaris Bank Sale-CBN

The Apex bank of Nigeria, CBN has disclosed through the Director of Corporate Communications, Osita Nwanisobi that it has invited 25 Firms to participate as it begins the selling process of Polaris Bank limited through the execution of a non-disclosure agreement.

 

He made this known in a statement titled, ‘Sale of Polaris Bank: CBN sets record straight’, while addressing misleading and malicious online publication which has been circulating the media space regarding the recent sale of the Federal Government’s interest in Polaris Bank Ltd.

 

He mentioned that due to the damage and instability, this misleading information may cause, it is only proper that the Apex bank correct these inaccuracies to this, he said “For the records, the public is referred to the statement dated October 20, 2022, by CBN & AMCON announcing the sale of 100 per cent equity in Polaris Bank to a new core investor, Strategic Capital Investment Limited, wherein it provided copious details of the process by which the sale was conducted.

“Contrary to claims in the aforementioned online publication, the divestment from Polaris Bank was supervised by a divestment committee which included senior representatives of AMCON and CBN, and supported by reputable legal and financial advisers.

“In addition, the divestment mode, process, and decision received requisite board and regulatory approvals. At no time did any other party make a higher purchase offer as falsely claimed by the online publication.

“The entity in question, Fairview Acquisition Partners, had indicated an interest in acquiring two banks, including Polaris Bank, for a total sum of N1.2tn, an indicative offer which significantly discounted the existing N1.31tn debt owed by Polaris Bank to AMCON and so represented a material loss to the Federal Government.

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“Notwithstanding, along with 24 other parties, Fairview Acquisition Partners was invited by the financial advisors to participate in the sale process via the execution of a non-disclosure agreement, the first stage of the process.”

He also added that the financial advisors have notified the committee that despite confirming the receipt of the agreement and follow-up by the financial advisor the  Fairview Acquisition Partners has not executed nor returned the NDA to the financial advisors.

Therefore, Fairview Acquisition Partners did not take the opportunity to update their offer by participating in the divestment process and thus did not make a binding purchase offer for Polaris Bank,” he said.

Mr. Osita stated that the legal, financial advisers and the committee conducted a rigorous and financial evaluation of the purchase proposals while assessing the promoters fitness and propriety, offer price received as against the reserve price, funding structure and financial capacity, strategy and growth plans among the rest.

He concluded by saying that the divestment was executed based on relevant laws, global best practices for bank resolutions, and requisite regulatory approvals.