was set up in 2010 to absorb non-performing loans in exchange for government bonds.
By the subscription agreement, AMCON
has become the owner of the three banks, and will provide sufficient capital to restore them to the level of capital adequacy stipulated by the CBN.
And to give the "new" banks a shot of getting out of very troubled waters, AMCON
has made a further injection of nearly $4bn.
asset management company was set up to restore them to zero shareholders' funds, while new investors have been sought to bring them up to minimum capital adequacy.
Wright, Chairman of AMCON
, stated that "The sale of our health and natural foods distribution business became necessary as we were not able to find suitable acquisition targets in that industry to grow the business effectively.
also operates fourteen (14) health and natural product retail stores in the Midwest and Florida.
It informed that the sale was completed after meeting all the terms and conditions stated in the Share Purchase Agreement (SPA) executed between AMCON
The bank said that the last tranche of the money, comprising 80 percent balance payment, was made to AMCON
on October 31, ahead of the November 3 deadline.
No bank ever dreamt of it before AMCON
In addition, AMCON
announced today that the company's Board of Directors has declared a cash a dividend of $0.
Skye Bank made the 80 per cent balance payment to AMCON
to fulfill the stock sale and acquisition deal earlier inked by both AMCON
and Skye Bank.
Subsequently, the assets of the banks were transferred to AMCON
and they are now expected to rebuild their business operations, develop their new brands and create value for their shareholders.