AMCON has found a buyer for Keystone Bank

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.

AMCON did not officially disclose the purchase consideration.

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.

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.

Keystone Bank has an equity of N18.5 billion and total assets of about N317.6 billion.

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.