— Strategic Capital Investment Limited bought Polaris Bank for an upfront payment of ₦50 billion.
— The investment company will still pay about ₦52 billion every year to the CBN for the next 25 years.
— Alhaji Muhammad K. Ahmad is the new Chairman of Polaris Bank while Adekunle Sonola is the new MD/CEO.
Strategic Capital Investment Limited (SCIL) have completed the acquisition of Polaris Bank from The Central Bank of Nigeria (CBN) and Asset Management Corporation of Nigeria (AMCON).
According to the announcement, SCIL paid ₦50 billion upfront and signed an agreement to pay back the CBN’s ₦1.305 trillion loan in instalments over the next 25 years. By estimation, the investment management venture would pay ₦52 billion annually.
Polaris Bank is a sort of poisoned pawn and it has been changing hands for quite sometime now. Before, it used to be known as Mainstreet Bank when Skye Bank bought it in 2014 for ₦126 billion from AMCON.
However, the new owners fell on hard times too and The Central Bank of Nigeria took over and fired its board. The bank had only been in the hand of Skye Bank handlers for less than two years. And, it didn’t just lose the bank it bought but its own operating license as well.
After retrieving the bank from Skye Bank, the CBN gave control to AMCON, which said that it had to put ₦786 billion into Polaris Bank Limited before it could find a new buyer.
Now, SCIL is placing Alhaji Muhammad K. Ahmad as Chairman of the board of directors of Polaris Bank and Adekunle Sonola would serve as MD/CEO. In addition, the CBN is mandating that the bank must make at least ₦60 billion in revenue to be able to repay the loans it is injecting in it.
Also, stakeholders are considering court action regarding the acquisition, which they feel is an illegality. However, for now, noting is confirmed on that end.
For your daily dose of tech, lifestyle, and trending content, make sure to follow Plat4om on Twitter @Plat4omLive, on Instagram @Plat4om, on LinkedIn at Plat4om, and on Facebook at Plat4om. You can also email us at firstname.lastname@example.org and join our channel on Telegram at Plat4om. Finally, don’t forget to subscribe to OUR YOUTUBE CHANNEL.