Nationalised banks: AMCON to announce advisers in June

The Asset Management Corporation of Nigeria has said that it will announce 11 financial advisers that have been shortlisted to sell the three nationalised banks that were bridged by the Nigeria Deposit Insurance Corporation last year.
The Managing Director, AMCON, Mr. Mustafa Chike-Obi, said at a presentation on Friday that the corporation had selected 11 advisers out of the 44 advisers that sent expressions of interest.
He said, “We are now in the process of evaluating what the nationalised banks are worth. We received 44 Expressions of Interest from different advisers, but we shortlisted 11 entries that will soon get requests for proposals. So, in the next four to six weeks from now AMCON will announce the advisors for the nationalised banks.
“The shortlisted advisers will get detailed RFP. In the proposal, we will specify what we want them to do and they will give out their fees. But this is going to take a while and will be very transparent.”
Chike-Obi pointed out that the corporation would get the best return, adding that the whole process would be done in the best interest of the financial sector.
The AMCON boss added that the corporation needed the advisers to know the present worth of the banks.
He said, “Selling a bank is a serious matter. We don’t know what the banks are worth today. We need experts to go into the banks and value what their current worth is. For us to say this is how much we are selling this, we need to know the value.
“Also, we need the experts to go into the banks to tell us the best options open to us. From there, we will come up with our plans. Selling a bank is not like selling a piece of corn, it’s a complicated process. So yes, we will get advisors, look at different options available to us and come up with plans. People should be patient.”
On the state of the nationalised banks, he noted that they were all profitable, adding that they were not living on the Central Bank of Nigeria’s lifeline.
Chike-Obi said, “My concern is that they have too much liquidity, some of them have 90 per cent liquidity. What we are telling them is to start lending because they are sitting awash with cash. We want them to buy less government security and make more loans available to the real sector.

Culled from thepunch
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