Diamond Bank confirms acquisition by Access Bank through merger scheme
The Chief Executive Officer of Diamond Bank, Uzoma Dozie has confirmed on Monday that the bank has concluded a strategic merger that will transfer its entire share capital to Access Bank in a scheme that will create one of the largest financial institutions in Africa.
“The proposed merger would involve Access Bank acquiring the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access Bank via a Scheme of Merger,” he said.
This statement has finally confirmed earlier reports where the details concerning the acquisition was somewhat speculative.
Speaking further, he disclosed that Diamond Bank will be absorbed into Access Bank in which instance the former will cease to exist.
“Based on the agreement reached by the Boards of the two financial institutions, Diamond Bank shareholders will receive a consideration of N3.13 per share, comprising of N1.00 per share in cash and the allotment of two New Access Bank ordinary shares for every seven Diamond Bank ordinary shares held as at the implementation date,” Mr Dozie clarified.
“The current listing of Diamond Bank’s shares on the NSE and the listing of Diamond Bank’s global depositary receipts on the London Stock Exchange will be canceled, upon the merger becoming effective.”
This new acquisition by Access bank could effectively elevate the bank into becoming the largest bank in Nigeria, surpassing Zenith Bank, which presently holds that position.
Dozie said the finalization of the merger will only come into effect with the stamp of approval from certain shareholders and regulatory bodies like Central Bank of Nigeria, CBN and Nigeria Stock Exchange.
All in all, it’s a done deal, they say.
