The Assets Management Corporation of Nigeria (AMCON) has come under severe criticism by some major shareholders over what they called the corporation’s hasty decision to sell Mainstreet Bank Limited, one of the bridged banks under its ownership.
The opposition is specifically against the one-week notice given by AMCON to those who are interested in bidding for the bank to express their interest. The notice is seen to be grossly inadequate for any meaningful due diligence to be done on the bank.
In advertorials in the media last week, AMCON gave a week’s notice to interested parties in the acquisition of the bank to submit their Expression Of Interest (EOI) not later than May 16.
To the parties, who asked not to be named so as not to jeopardise their interest, the “rush” by AMCON to push Mainstreet Bank through the divestment process without recognising the enormous work that needs to be done to ensure fairness and transparency in the eventual bid process, put a question mark on AMCON’s intention.
The potential buyers said while they were in agreement with AMCON on the need to move ownership of the bridged banks from the domain of public ownership and government control to the private sector, the process should be well “streamlined”, well publicised and allowed enough time to be examined by all interested parties, and should never be an issue that should be,as it were, rushed, as though there is more to it than meets the eye”.
“It is a welcome development that these banks are eventually finding their way into the private sector domain where they should be in the first place, but we insist that the process should be meticulous and not rushed, as no purpose will be served if the divestment is not transparent, or seen to be so,” they said, adding that one week is grossly inadequate for a thorough job to be done and for every participant to be acquainted with the requirement to meet the rigorous process in the evaluation “except they want us to go home with the impression that this is a predetermined exercise.”
The groups who are insisting that every interested party in the acquisition of Mainstreet Bank should be given equal opportunity, cautioned that AMCON, having midwifed the banking transformation process successfully thus far, should not rush into taking decisions or actions that would appear in the eyes of stakeholders to be pursuing “a hidden agenda, surreptitiously”.
The group insists that Mainstreet Bank Limited, Enterprise Bank Limited and Keystone Bank Limited are national assets, to which every Nigerian has a claim, insisting that all the processes leading to their sale, or privatisation at any material time must be done in such a manner that no one is seen to be excluded, either by way of withholding information, or restricting access to the process by not allowing sufficient time for qualified people to participate therein.
The groups and stakeholders, said it would amount to disservice and criminal acquiescence for AMCON to ignore the concerns of Nigerians by going ahead with the process of selling Mainstreet Bank Limited or any of the other two when they are eventually brought to the market without incorporating the interest of other potential buyers (even if a single buyer) by ignoring the call for elongation of the time allotted to submit EOI and proceed with the divestment as contained in the AMCON’s advertisement.
They drew AMCON’s attention to the mood of the nation, regarding the kidnapping of “our daughters” by Boko Haram, stressing that no feeling of any one Nigerian should be further dampened by actions of those entrusted, not only to protect, but defend their interests.
Taking cognisance of the transition in the Central Bank of Nigeria (CBN), the groups said much confidence would be derived if AMCON were to tarry a while and give the CBN Governor-designate, Godwin Emefiele, and his team the benefit of introspection, rather than rush the process as though any harm will be done if the divestment is not accomplished today and foist upon the new CBN Governor a fait accompli.
They recalled the lingering and unresolved labour issues that have trailed the acquisition of some of the sold or acquired banks, stating that none of the bridged banks being prepared for privatisation at this time should be made to suffer the same fate.
They said labour matters are intractable and should be properly addressed to avoid any backlash.
In its advertisement calling for Expression Of Interest (EOI), AMCON said interested buyers should provide information in respect of the vehicle or entity they intend to use in the acquisition, among others, with evidence of registration with the Corporate Affairs Commission, ownership of the acquiring entity, identifying all shareholders with five per cent , or more stake, and strategic rationale for the acquisition of Mainstreet Bank.
In addition, interested firms are expected to provide relevant financial services industry where they have acquired cognate experience and demonstrable evidence of ability to manage a bank of the stature of Mainstreet, as well as evidence of financial capacity.
In the case of a consortium, AMCON required that the parties must provide evidence of alliance or partnership, clearly indicating the leader of the group that is authorised to submit the EOI, adding that full names of contact persons, e-mail addresses as well as any relevant information that demonstrates credibility and eligibility for the transaction are required.
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