Skye Bank Shareholders Approve Purchase of Mainstreet Bank

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Timothy Oguntayo

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IN compliance of court order, shareholders of Skye Bank Plc have unanimously endorsed the acquisition of Mainstreet Bank Limited. The bank organised an extra ordinary general meeting immediately after its 9th Annual General Meeting held in Lagos. Tunde Ayeni, chairman of the bank, disclosed that the Securities and Exchange Commission, SEC, had given its clearance to the scheme.

According to Ayeni, after the receipt of the scheme clearance from the SEC, an application was filed at the Federal High Court which directed the meeting of the shareholders of the banks be convened and the scheme be presented for their consideration and approval.

Explaining the benefits and effects of the scheme which gives legal seal to the acquisition, Timothy Oguntayo, group managing director of the bank, said the proposed restructuring would create a platform where significant synergies could be obtained for the benefits of the shareholders, employees, customers and the economy as a whole.

He further identified other benefits of the restructuring to include the opportunity to reposition the enlarged Skye Bank as a tier 1 bank within the Nigerian financial services space based on the expected benefits arising from economies of scale and scope. “A business combination of this nature will potentially lead to revenue enhancements and cost savings for the enlarged Skye Bank with a wider customer base,” Oguntayo said.

The Skye Bank boss explained that the scheme would provide an additional buffer to the existing capital base of the bank in the event of subsequent recapitalization directives by the CBN, addition to presenting an opportunity to create a stronger risk asset portfolio for the enlarged bank. The shareholders also approved the appointments of four new executive directors by the board of the bank.

— Jun 22, 2015 @ 01:00 GMT

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