The Asset Management Corporation of Nigeria announced on Thursday that Heritage Banking Company Investment Services Limited had completed payment for the acquisition of Enterprise Bank.
The HISL is a special purpose vehicle sponsored by Heritage Bank to bid for Enterprise Bank.
AMCON had last month announced HISL as the preferred bidder for Enterprise Bank, giving HISL up to Wednesday, October 15, 2014 to pay the 80 per cent balance of the bid price.
However, the Head of Corporate Communications, AMCON, Mr. Kayode Lambo, said in a statement on Wednesday, “We hereby confirm that HBCL Investment Services Limited has paid the required balance for the purchase of Enterprise Bank.
“As per the share purchase agreement, the agreed completion phase will now commence; this includes seeking all regulatory approvals.”
Heritage Bank had about three weeks ago paid 20 per cent of the N56.1bn bid price, leading to the signing of the share purchase agreement.
“The final payment of the balance of the bid price by HISL within the timeframe specified by AMCON means the coast is clear for Enterprise Bank and Heritage Bank to merge as one stronger banking entity,” HISL said in a statement.
It further said that Enterprise Bank acquisition was a clear signal that Heritage Bank, which entered the market slightly over a year ago with a regional bank status following the acquisition of the banking licence and liabilities of the defunct Societe Generale Bank of Nigeria, was well on its way to becoming a strong national bank.
“The acquisition of Enterprise Bank, which currently boasts of 165 branches, will increase Heritage Bank’s points of presence from the current 15 Experience Centres to nearly 200 branches spread all over the country.”
The Managing Director and Chief Executive Officer, Heritage Bank, Ifie Sekibo, was quoted to have said after the payment of the initial 20 per cent of the purchase price that arrangements were already in place by the HISL to ensure the payment of the balance within the timeframe stipulated by AMCON.