The Central Bank of Nigeria (CBN) has issued a statement concerning a “spurious, malicious, and misleading online publication” regarding the recent sale of the Federal Government’s interest in Polaris Bank.
In the statement, signed by Osita Nwanisobi, Director of Corporate Communications for the CBN, the apex bank denied the allegations made in the publication and emphasized the potential risks it posed to the stability of the bank, financial sector, and Nigerian economy.
“Given the potentially grave implications for the stability of the bank, financial sector and the Nigerian economy, the CBN is constrained to correct these inaccuracies,” the statement said.
The CBN denied the claims made in the publication and stated that the divestment from Polaris Bank was conducted with the supervision of a Divestment Committee comprising representatives from both the CBN and the Asset Management Corporation of Nigeria (AMCON).
The committee was supported by reputable legal and financial advisers and received all necessary board and regulatory approvals.
Contrary to the claims made in the online publication, the CBN stated that no other party made a higher purchase offer for Polaris Bank. The apex bank noted that the entity in question, Fairview Acquisition Partners, had only expressed an interest in acquiring the bank and did not participate in the divestment process beyond executing a Non-Disclosure Agreement.
“At no time did any other party make a higher purchase offer as falsely claimed by the online publication,” the statement said.
“The entity in question, Fairview Acquisition Partners, had indicated an interest in acquiring two banks, including Polaris Bank, for a total sum of N1.2 trillion, an indicative offer which significantly discounted the existing N1.305 trillion debt owed by Polaris Bank to AMCON and so represented a material loss to the Federal Government.”
The CBN emphasized that the divestment was conducted in accordance with relevant laws and global best practices, and that the purchase proposal from Strategic Capital Investment Limited (SCIL) was the most comprehensive and highest-rated in terms of growth plans for Polaris Bank. SCIL’s binding offer, which was significantly above the core valuation and reserve price, involved an upfront payment of N50 billion and the assumption of the N1.305 trillion debt owed to AMCON.
“SCIL’s binding offer involved an immediate upfront consideration of N50 billion and full responsibility for the debt of N1.305 trillion owed to AMCON, essentially a total purchase consideration of N1.355 trillion,” the statement said.
“This offer was the most competitive and provided taxpayers and the Federal Government with more than full recovery of its intervention cost.”
The CBN concluded by saying that the online publication deliberately misrepresents the circumstances surrounding the sale of Polaris Bank and is intended to undermine the credibility of the divestment process.
The apex bank encouraged the public to refer to its official statement dated October 20, 2022 for accurate and reliable information on the sale.
