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.10 facts to note about Polaris Bank
COMFORT EKELEME, Business Editor
Shareholders in the nation’s financial sector have expressed disappointment over the sale of Polaris Bank Limited to a new investor.
They argued that the development would discourage local investors.
The Central Bank of Nigeria (CBN), last week announced the completion of a Share Purchase Agreement (SPA) for the acquisition of 100per cent of the equity in Polaris Bank by Strategic Capital Investment Limited (SCIL).
Speaking with Daily Champion in a telephone interview, Immediate Past Publicity Secretary, Independent Shareholders Association of Nigeria (ISAN) Mr. Moses Igbrude said that selling a national asset without considering its long term sustainability is not a good idea.
He said, selling of Skye Bank, now Polaris Bank without compensating the minority shareholders who suffered losses because of the takeover of the bank is not a good idea; it is very discouraging to local investors.
“I am appealing to those concerned that they should consider ways of getting the ordinary shareholder involved; the federal government should not overlook us. I am also appealing that the federal government should include in the sale agreement, a clause that the bank should be listed as a PLC on the floor of the Nigeria Exchange Limited (NGX).
“The clause will subject the bank’s account to be publicly scrutinized by getting other investors involved through the capital market,” he said.
Also speaking, National Co-ordinator, Pragmatic Shareholders Association of Nigeria, Mrs. Bisi Bakare said that Nigerian shareholders are totally against the sale of the bank to a new investor.
She said, “We not happy about it because shareholders have always been the risk bearers when something like this happen. It is very annoying selling it to another investor; it is just unfortunate that the regulators are treating investors like this.
According to her, this development will again discourage the investing public from investing in this country.
Mrs. Bakare further noted that the present government have not been favouring the investing public at all, adding that shareholders are thinking of going to court.
She said, “We will try our best to do that despite that fact that we already know the outcome, we are going to challenge in court it because it is not a good sign to the investing public.
National Co-ordinator of Progressive Shareholders Association of Nigeria (PSAN) Mr. Boniface Okezie maintained that the new buyer of Polaris Bank must bear in mind that there will be legal actions against whoever is buying the bank.
He stated that the suffering minority shareholders have not been compensated by the regulators as promised, adding that there is no rule of law in this country.
Speaking further, he said, “The Strategic Capital Investment Limited (SCIL) should know that there will be Legal actions against them because we are going to challenge them. It is just a matter of time, the immunity of those in authority cannot continue. A day of reckoning is coming when leadership will be called to accounts for their stewardship.
“The problems that befall Skye Bank were cause by the regulators who approved the acquisition of the bank without coming to the market to raise funds.
Speaking further, Okezie maintained that the regulators have explanation to give to Nigerians and the Investing public on what led to the fall of Skye Bank Plc before they Christian it Polaris Bank Limited and eventually.
“It is not enough to tell the government and the people that the bank went under. There are many questions begging for an answer, why it must be the shareholders that will suffer,” he said.
National Publicity Secretary, Independent Shareholders Association of Nigeria, (ISAN), Hakeem Batula told Daily Champion that the hope of every investor is see his/her investment grow, adding that shareholders are pained seeing their investment gone.
He said, “To plan for tomorrow, you have to put your money somewhere, and one of the places is in buying shares in companies, which we did, hoping it will grows and bring returns. Now, Skye Bank Polaris is gone, we don’t have anything, all our investment is gone.
He said that Nigerian shareholders will take an action very soon.
Batula maintained that poor corporate governance is among the reasons why companies are not doing well in Nigeria.
Meanwhile Polaris Bank has said it has been notified of the completion of a Share Purchase Agreement (SPA) for the acquisition of 100 per cent of the equity in Polaris Bank by Strategic Capital Investment Limited (SCIL).
As part of the change in ownership, SCIL has appointed a new independent Board of Directors to lead the bank’s growth strategy.
The new Board will be led by the existing Chairman M K Ahmad. He will be joined on the board by 6 non-executive directors and 3 executive directors, bringing extensive experience in the banking and wider financial services sector in Nigeria and internationally, and expertise in corporate governance, human resource management, law, and regulation.
The incoming boards are Alhaji MK Ahmad (Chairman), Mr. Abubakar Danlami Suleiman (Non-Executive Director), Ms. Salma Mohammed (Non-Executive Director), Mr. Adeleke Alex Adedipe (Non-Executive Director), Mr. Ahmed Almustapha (Non-Executive Director), Mr. Francesco Cuzzocrea (Non-Executive Director), Mrs. Olabisi Olubunmi Odunowo (Non-Executive Director),Mr. Adekunle Sonola (Executive – MD/CEO), Abdullahi S Mohammed (Executive Director), Mr. Segun Opeke (Executive Director)
Commenting on the acquisition and board transition, Chairman of Polaris Bank Alhaji M K Ahmad said: “I would like to thank the outgoing board members profusely for their hard work and dedication over the last four years as we have established a strong governance structure and stabilised the bank. I am very pleased with the progress we have been able to make, and that we have delivered on our mandate to prepare the bank for a return to private ownership. I am personally proud to have been asked to lead the bank into an exciting new future and I look forward to working with the new board and our core investors to build on the platform we have created.”
Speaking on behalf of SCIL, the new core investor, the incoming MD/CEO, Adekunle Sonola said: “We are excited to participate in the next phase of growth for Polaris Bank and to have been able to recruit such an experienced and diverse Board of Directors we are confident can lead Polaris Bank into a new era of sustainable growth.
“This is an exciting time for the Nigerian financial services industry and we are committed to building on the strong foundations that have been established by the departing board. We would like to express our thanks for their service and wish them well.
“We have mandated the incoming management to develop an innovative, but sustainable growth strategy that prioritises the needs and aspirations of our current customers,” he said.
.Ten Facts to note about Polaris Bank.
However, The headlines have been buzzing with the news of the sale of Polaris bank. Here are ten important facts to note:
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