News Column

Shareholders Caution Investing Public Over AMCON's Move to Sell Mainstreet Bank Assests

May 22, 2014

Some shareholders of Mainstreet Bank Ltd, formerly Afribank, have cautioned the investing public on the expression of interest for the acquisition of the Asset Management Corporation (AMCON) interest in the bank.

The shareholders stated this in a statement issued by the association and obtained by the News Agency of Nigeria (NAN) in Lagos on Wednesday.

The shareholders, under the aegis of the Independent Shareholders Association of Nigeria (ISAN), called on the general public to desist from acquiring AMCON's shares in the bank, to avoid contempt of court.

They said that the legality of the Central Bank of Nigeria (CBN's) intervention in the affairs, business and operations of Afribank was under a subsisting litigation at the Federal High Court in Lagos.

The shareholders said that there was an order from the court nullifying, vacating and setting aside any and all steps by Nigerian Deposit Insurance Corporation (NDIC) and AMCON to dispose Afribank of its assets, business and operations.

It also said that the order also restrained NDIC and AMCON from transferring assets, business and operations to Mainstreet Bank Ltd.

NAN reports that AMCON recently called for expression of interest in the acquisition of its 100 per cent share capital in Mainstreet Bank and all of its subsidiaries.

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Source: AllAfrica