Barely a week after the House of Representatives directed the Central Bank of Nigeria (CBN) to suspend the planned sale of Polaris Bank, the apex bank and the Asset Management Company of Nigeria (AMCON) have confirmed the completion of a Share Purchase Agreement for the acquisition of 100 percent of the equity in Polaris Bank by Strategic Capital Investment Limited.
The confirmation on Thursday came after the House of Representatives on Wednesday reversed itself and okayed the sale of Polaris Bank, saying it followed laid-down procedure and the relevant presidential approval.
“The CBN thus received an immediate return for the value it has created in Polaris Bank during the stabilisation period, as well as ensuring that all funds originally provided to support the intervention are recovered,” they said.
The CBN had in 2018 revoked the licence of the former Skye Bank Plc and established Polaris Bank to assume its assets and certain liabilities, which has since then operated as a bridge bank.
“As part of the CBN intervention, consideration bonds with a face value of N898 billion (future value of N1.305 trillion) was injected into the bridge bank through AMCON, to be repaid over a 25-year period,” Nwanisobi explained in the statement on behalf of the CBN and AMCON.
“These actions were taken to prevent the imminent collapse of the bank, enable its stabilisation and recovery, protect depositors’ fund, prevent job losses and preserve systemic financial stability,” the statement said.