Skye Bank may sell subsidiaries to boosts capital

The Chief financial officer, Skye Bank Plc, Pius Olaoye has said the lender might sell some or all of its local and foreign subsidiaries as part of a review aimed at streamlining operations and boosting its capital adequacy.

The Central Bank of Nigeria (CBN) shored up Skye Bank in July with a more than N100 billion capital injection, after sacking its top management for failing to meet minimum capital requirements.

Olaoye in Lagos recently said that the bank would sell subsidiaries if the pricing was right and has appointed advisers to help find buyers.

Skye Bank, which holds an international bank license, has three subsidiaries in West Africa and 10 non-bank subsidiaries.

According to him, “We’re looking at the various outlets that we have and some of those foreign subsidiaries are part of it. If we get good offers we will consider selling them off.

“If we get good offers then we’ll go ahead and spin off all of them, if not it will be selective”, he said.

It would be recalled that the lender acquired Mainstreet Bank in 2014 and has not raised fresh funds. Although, it was in talks with shareholders and new investors last year that it was planning to raise N30 billion but had to suspend the plans due to weak capital markets and the exit of foreign investors as the slide in oil prices hit Nigeria’s economy.

Skye Bank shares have been affected by capital failures, plunging 68 per cent this year to hit a nominal value of N0.50, after sliding 41 per cent last year.