Why is AMCON hiding personalities behind new owner of keystone bank?

It is no longer news that the last of the three abridged banks, Keystone Bank, formerly Bank PHB Plc, has been sold by Asset Management Corporation of Nigeria (AMCON) to a new group of masked investors at AMCON
But what has generated unanswered questions from industry watchers was the process of the sales and why the asset managers had failed to furnish the general public the vital information required during and after the sales.

For instance, AMCON did not include personalities behind the new owner in its statement released last Monday but referred to them as consortium of local investors called Sigma Golf Nigeria Limited and Riverbank Investment Resources.
Moreover, a global search on the two firms did not reveal any existing profile or transaction beyond the deal with AMCON on the Keystone Bank transaction.

Hence, further investigation revealed that some very influential business and political interests from the northern part of the country might be behind the successful take-over of the once distressed bank.

There are also some unconfirmed reports that showed that the firm believed to have won the bid was reportedly not part of the bidding for the purchase of the financial institution.

Keystone Bank with its nearly 160 branches is now owned by a firm linked to former Vice President Atiku Abubakar and Umar Modibbo, MD/CEO of Sigma Pensions Limited, had emerged.

The two influential Nigerians are allegedly being represented by the firm which our sources said did not participate in the bidding process, in a clear contradiction of basic public asset sale requirements.

The Keystone Bank, previously known as Bank PHB, was among the three banks nationalised by the CBN in 2011, after failing failed a stress test conducted by the apex bank.

The two others, Mainstreet and Enterprise Banks, had been handed over to other stronger banks in the industry by AMCON more than a year ago.

According to an industry source close to AMCON, Mr. Kuru sidestepped laid down requirements for asset sale to ensure Keystone is ceded to his cronies.

The source said the firm being favoured by AMCON did not participate in the bidding process and that this contradicts the basic requirements for public asset sale.

According to AMCON, 13 companies had submitted their expression of interests but none was picked.
“It is very clear that all caution was thrown to the wind as a result of a grand plan to disqualify very strong and reputable intended buyers in order to allow the cronies and business associates of the Managing Director take over the bank,” an industry source has disclosed.

But in a statement by the bank over the weekend, AMCON has handed over Keystone Bank to its new owner.
“Effective from Friday 24th March 2017, the new investors took control of Keystone Bank and are set to reposition the bank on a growth path with immediate effect”, the statement has revealed.

This follows the announcement by the Asset Management Corporation (AMCON) on Tuesday 21stMarch 2017 that the Sigma Golf-Riverbank consortium had acquired Keystone Bank Limited. The Completion Meeting according to a statement from Keystone Bank, was held on Thursday, 23rd March 2017 with representatives of Sigma Golf-Riverbank consortium (the Buyer), AMCON (the Seller), Board and Management of Keystone Bank, as well as the advisers to the Buyer (KPMG Professional Services, Boston Advisory Services, Giwa Osagie & Co., Pan-African Capital Limited) and the Seller (FBN Capital Limited, Citibank Nigeria limited, Banwo & Ighodalo, CrosswrockLaw).

The Completion Meeting signified the effective hand-over 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 has been managed by the AMCON appointed Board and Management that stabilized the bank over the years to make it attractive as a potential target for eventual acquisition by the new investors, who emerged as 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 industry and actualize its full potentials. 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.