Skye Bank may sell subsidiaries to boost capital

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Skye Bank may sell some or all of its local and foreign subsidiaries as part of a review aimed at streamlining operations and boosting its capital adequacy, its chief financial officer said.

The Nigerian central bank shored up Skye Bank in July with a more than 100 billion naira ($329 million) capital injection, after sacking its top management for failing to meet minimum capital requirements. It then appointed a new management team.

Skye CFO Pius Olaoye said on Tuesday that the bank would sell subsidiaries if the pricing was right and has appointed advisers to help find buyers. Skye, which holds an international bank license, has three subsidiaries in West Africa and 10 non-bank subsidiaries.

“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,” Olaoye told Reuters in a phone interview. “If we get good offers then we’ll go ahead and spin off all of them, if not it will be selective.”

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