Skye Bank, on October 9, paid the mandatory deposit of 20 per cent for the acquisition, a deal that was valued at between N120 billion and N126 billion. The differential in the value was due to the variation in the exchange rate base used by the various sources for the dollar-based value of the deal.
The payment of the 80 per cent balance has fulfilled the terms of the Share Sale and Purchase Agreement signed by AMCON and Skye Bank. With the payment, Skye Bank Plc has completed one of the biggest acquisitions in Nigeria, a deal which also leapfrogged Skye Bank as one of the biggest and largest banks in terms of branch network.
Mainstreet Bank has nine subsidiaries and a large distribution network comprising 201 branches across 35 states and the Federal Capital Territory, Abuja. It has nine cash centres and 200 Automated Teller Machines (ATMs). The management of Skye Bank had said acquisition was one of the bank’s strategic plans for growth, having itself been a product of one of the complex mergers and acquisitions. Skye Bank emerged from the merger and integration of five banks in 2006, following the first phase of the banking consolidation.
The bank said it intends to leverage its wealth of experience from the successful integration of five banks to drive efficiency, increase market share and, ultimately, ramp up stakeholder value from the acquisition of Mainstreet Bank.
The management of Skye Bank has also assured the customers of Mainstreet Bank of excellent service and superior value in the enlarged Skye Bank.
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