Top Nigerian financial institution, Skye Bank, says it has acquired Mainstreet Bank Limited after the meeting where Asset Management Corporation of Nigeria (AMCON) stripped its interest and reassigned full ownership of the bank to it.

Local newspaper, Thisday, reported said the handover was done at a ceremony held at AMCON headquarters in Lagos which had the directors of Mainstreet Bank Limited and Skye Bank present. This comes after Skye Bank paid 100 percent of the procurement value and received clearance for ownership.

Skye Bank, which has a strong presence and full operations in the South-west, hopes that this development will see Mainstreet Bank expand its penetration to other regions in Nigeria. The two banks share a mutual focus on retail and commercial banking, thereby creating a synergy in the overall operations of a bigger Skye Bank.

The competitive bidding process, which involved over 29 potential investors, lasted over a year. Skye Bank emerged top bidder, meeting the November 3 deadline and having paid both the initial 20 percent mandatory deposit and completed the 80 percent within the designated time.

Analysts who had commented prior to the final acquisition responded positively, saying it was a bold step which promises good potential for Skye bank. “While we do not have enough detail on the transaction to comment on the financial impact, but I can safely say that this deal is nothing short of transformational for Skye Bank and if executed well, it could put them in a position to enter the elite group of tier 1 banks,” said Kato Mukuru, Partner and Head of Equity Research at Exotix Partners LLP.