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AMCON Hands over Keystone Bank to New Investors

The Sigma Golf-Riverbank consortium, the new investors that acquired Keystone Bank Limited from the Asset Management Corporation of Nigeria (AMCON), at the weekend took control of the financial institution.

The new investors have pledged to reposition the bank on a growth path with immediate effect.

AMCON recently announced Sigma Golf Nigeria Limited and Riverbank Investment Resources Limited as the new owners of the bank.

The completion meeting, according to a statement from Keystone Bank, was held last Thursday with representatives of Sigma Golf-Riverbank consortium, AMCON, the board and management of Keystone Bank, the advisers to the buyer (KPMG Professional Services, Boston Advisory Services, Giwa Osagie & Co., and Pan-African Capital Limited), as well as those of the seller (FBN Capital Limited, Citibank Nigeria Limited, Banwo & Ighodalo, and CrosswrockLaw).

 

The completion meeting signified the effective handover of the bank to the buyer and the commencement of a transition process that will culminate in the reconstitution of the board and management of the bank to reflect the new ownership.

Keystone Bank was taken over by AMCON in 2011 and was until the sale managed by the AMCON appointed board and management that stabilised the bank to make it attractive as a potential target for eventual acquisition by the investors.

According to AMCON, the Sigma Golf-Riverbank consortium emerged as the preferred bidders after a very transparent and competitive bidding process.

“The emergence of the Sigma Golf-Riverbank consortium will bring a new lease of life with the expected injection of fresh capital that would position the bank to play competitively in the banking space and actualise its full potential.

“In moving the bank forward as a major player in the industry, the new investors will be backed up by a pool of reputable professionals both currently within the bank and across the industry.

 

 

 

“Keystone Bank therefore assures all its stakeholders that the transition process will reposition the bank to serve its customers better, creating enhanced value for all stakeholders,” the bank added.

THISDAY had exclusively reported that the bank, which was valued at almost N4 billion, was sold to the Sigma Golf-Riverbank consortium for N25 billion ($81.5 million), while the reserve bidder offered N13 billion ($42.4 million).

One of the financiers of the consortium is the former Managing Director/CEO of Sigma Pensions Limited, Mr. Umar Hamidu Modibbo. Modibbo and his brother, Adamu Mu’azu Modibbo, a former governorship aspirant in Adamawa State, were the founders of Sigma Pensions, a pension fund administrator (PFA), until its sale to Actis LLP, a private equity investor in emerging markets, in November 2015.

 

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