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Sigma Golf's Acquisition of Keystone Bank; What We Know So Far


The Asset Management Corporation of Nigeria has announced the sale of Keystone Bank Plc (formerly Bank PHB). The bank was sold to Sigma Golf Nigeria Limited and Riverbank Investment Resources Limited (the Sigma Golf-Riverbank consortium) for a sum of N25 billion ($81.5 million), while the reserve bidder offered N13 billion ($42.4 million) for Keystone Bank

Here is what we know so far;
  • The consortium that acquired the company, Sigma Golf Nigeria Limited and Riverbank Investment Resources Limited (the Sigma Golf-Riverbank consortium), is related to Pension Fund Asset Managers, Sigma Pension Funds.
  • Former CEO and founder of Sigma Pension Funds is said to be the promoter of Sigma Golf Nigeria Ltd 
  • The transaction has been approved by the Central Bank of Nigeria.
  • Reports also suggest Keystone is valued at N4 billion, meaning that AMCON sold at a premium of 6x.
  • Based on the audited financial statement of the bank as of June 30, 2015, Keystone Bank’s total assets stood at N317.6 billion, customer loans at N98.2 billion, customer deposits at N245 billion and total equity at N18.9 billion. As of December 2015, Keystone Bank had four operational subsidiaries of which two are international; and a distribution network comprising 156 branches, 22 cash centres and 306 ATMs.
  • At a price of N25 billion, Keystone Bank’s valuation is now higher than Sterling Bank and Diamond Bank at N21.5 billion and N22 billion respectively.
  • We also understand that Keystone Bank could require an additional injection of N100 billion by the Sigma Golf-Riverbank consortium.
  • Last year, Actis invested about $65 million (N22.7 billion assuming N350/$1) in Sigma Pensions. The deal gave Actis a “majority stake” in the company.
  • Sigma Pension Fund was founded by Umaru Modibbo and and his brother, Adamu Mu’azu Modibbo, a former governorship aspirant in Adamawa State in 2004.
  • The deal will be finalized as soon as conditions in the Share Purchase Agreement are fulfilled by all parties.
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