The Central Bank of Nigeria (CBN) and the has announced the sale of Polaris Bank to a new core investor, Strategic Capital Investment Ltd. (SCIL), a company registered on April 28, 2022 with the Corporate Affairs Commission, Political Economist NG can report.

Checks by Political Economist NG at the CAC showed that SCIL has two ‘persons’ with controlling shares (PCS). They are Ponglomerape Limited with address in Maitama, Abuja and Clotaire Investment Limited with address on Victoria Island, Lagos.

While Ponglomerape Limited is owned by Lawan Shaibu, Lawan Abdullahi, Lawan Jamilu, and Lawan Mohammed Auwal, Clotaire has only one owner – Zagamon Limited, a company registered in Mauritius.

Some experts have kicked against the sale, arguing that the bank was under-valued. An Economist, Maxwell Chiazor, said the CBN under-sold Polaris which had operated in the last four years as a bridge bank.

“You don’t just sell to recoup the actual amount invested in a business, that is not smart business even in banking sector which still remains a lucrative business. Where is the profit for CBN and for Nigerians?”, he queried.

Other experts spoken to by our reporter also echoed same sentiment, insisting that Polaris Bank was sold for cheap.

A statement signed by Mr Osita Nwanisobi, Director, Corporate Communications and posted on CBN website on Thursday, said the sale was concluded after a Share Purchase Agreement (SPA) for the acquisition of 100 per of the equity in the bank by SPA.

Political Economist NG reports that Polaris has been operating as a bridge bank since 2018 when the CBN intervened to revoke the licence of the former Skye Bank Plc.

CBN also established Polaris Bank to assume its assets and certain liabilities.

As part of the CBN intervention, consideration bonds with a face value of N898 billion (future value of N1.305 trillion) was injected into the bridge bank through the Asset Management Company of Nigeria (AMCON), to be repaid over a 25-year period.

These actions were taken to prevent the imminent collapse of the bank, enable its stabilisation and recovery, protect depositors’ fund, prevent job losses and preserve systemic financial stability.

It said SCIL had paid an upfront consideration of N50 billion to acquire 100 per cent of the equity of Polaris Bank.

The statement further said it had also accepted the terms of the agreement, which included the full repayment of the sum of N1.305 trillion, being the consideration bonds injected.

It said, “The CBN thus received an immediate return for the value it has created in Polaris Bank during the stabilisation period, as well as ensuring that all funds originally provided to support the intervention are recovered.

“The sale was coordinated by a Divestment Committee (the ‘Committee’) comprising representatives of the CBN and AMCON, and advised by legal and financial consultants.

“The committee conducted a sale process by ‘private treaty’, as provided in Section 34(5) of the AMCON Act to avoid negative speculations, retain value and preserve financial system stability.”

According to the statement, in the process, parties who had formally expressed an interest in acquiring Polaris Bank, subsequent to the CBN intervention in 2018, were invited to submit financial and technical proposals.

“Invitations to submit proposals were sent to 25 pre-qualified interested parties, out of which three (3) parties eventually submitted final purchase proposals following technical evaluation.

“All submissions were subject to a rigorous transaction process from which SCIL emerged as the preferred bidder having presented the most comprehensive technical/financial purchase proposal as well as the highest rated growth plans for Polaris Bank,” it said.

Political Economist NG reporter quotes Mr Godwin I. Emefiele, Governor of CBN as saying: “This sale marks the completion of a landmark intervention in a strategic institution in the Nigerian banking sector by the CBN and AMCON.

“We commend the outgoing board and management for their vital role since the bridge bank was established; in stabilising the bank’s operations, its balance sheet and implementing strong governance structures to address the issues that led to the intervention.

“This process has provided the CBN with an unprecedented opportunity to recover its intervention funds in full and promote financial stability and inclusive growth.

“We wish SCIL well as they implement growth plans to build the bank from the strong foundations that have been established.”