Company Limited, has emerged the preferred bidder to buy Enterprise Bank Limited from the Asset Management Company (AMCON), while another Nigerian lender, Fidelity Bank PLC was chosen as the reserved bidder.

“The Asset Management Corporation of Nigeria … is pleased to announce HBCL Investment Services Limited (“HISL”) as preferred bidder and Fidelity Bank PLC (“Fidelity Bank”) as reserved bidder for the acquisition of the entire issued and fully paid up ordinary shares of Enterprise Bank Limited,” a statement by the corporation said.

According to AMCON, the announcement came following approval of the transaction by the Board of Directors of AMCON.

Established in July 2010, AMCON was created to be a key stabilizing and re-vitalizing tool for the revival of Nigeria’s financial system by efficiently resolving the non-performing loan assets of the banks in the Nigerian economy.

In line with its mandate, the corporation took over three failing Nigerian banks – Afribank, Spring Bank, Bank PHB – after the Central Bank of Nigeria (CBN) revoked their operating licences, as, according to the apex bank, they did not show enough capacity and ability for recapitalization. Hence, the CBN through the Nigeria Deposit Insurance Corporation (NDIC) established Bridge Banks: Mainstreet Bank, Enterprise Bank and Keystone Bank, and transferred the assets and liabilities of the three affected banks to them.

AMCON acquired the Bridge Banks from the NDIC and injected N679 billion into them to enable them meet the minimum capital requirement of N25 billion and the 15 percent minimum capital adequacy ratio.

With the banks now back to profitability and relatively stable, AMCON seeks to recoup its investment by selling the banks to suitable bidders. Apparently the most profitable of the three banks, Enterprise Bank was last year put up for sale by AMCON. The bidding process has now ended and the transaction will be completed as soon as certain conditions are met.

“The completion of the Transaction is subject to the fulfilment of the conditions precedent as stated in the Share Purchase Agreement (“SPA”) that is to be executed between AMCON and HISL,” the corporation said.

If HISL is unable to fulfil the terms, the SPA would be terminated and Fidelity Bank would become the preferred bidder and could then complete the transaction in line with set conditions. That would signal the end of the sale process of Enterprise Bank, which started with 24 bidders both locally and internationally.

Upon successful completion of the sale of Enterprise Bank, Keystone Bank and Mainstreet Bank are expected to follow.