Diamond Bank Confirms Merge With Access Bank

Access Bank Plc has finally merged with Diamond Bank Plc, the board of Daimond Bank Plc announced this on Monday.

Both banks earlier denied media reports of any merger.

Mr Uzoma Dozie, the bank’s Chief Executive Officer, states in Lagos that the board had chosen Access Bank Plc as the preferred bidder with respect to a potential merger of both banks.

In addition, he said that the transaction would be completed in the first half of 2019 and is in the best interest of all stakeholders.

Dozie said the completion of the merger was subject to certain shareholder and regulatory approvals.

“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.

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“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 N1 per share in cash,” he said.

Also, Dozie revealed that the transaction would include the allotment of two new Access Bank ordinary shares for every seven Diamond Bank ordinary shares held as at the implementation date.

“The offer represents a premium of 260 per cent to the closing market price of 87k per share of Diamond Bank on the Nigerian Stock Exchange (NSE) as of Dec. 13, 2018, the date of the final binding offer,” Dozie said.

He said the bank’s shares would be absorbed into Access Bank at the completion of the merger and Diamond Bank would cease to exist under Nigerian law.

“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 cancelled, upon the merger becoming effective,” he added.

Dozie said the proposed combination with Access Bank would create one of Africa’s leading financial institutions.

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“The board of Diamond Bank believes that the proposed combination of the two operations provides an exciting prospect for all stakeholders in both businesses, he said.

Mr Herbert Wigwe, Access Bank the Chief Executive Officer, said: “Access Bank has a strong track record of acquisition and integration and has a clear growth strategy.

“Access Bank and Diamond Bank have complementary operations and similar values, and a merger with Diamond Bank with its leadership in digital and mobile-led retail banking’

“This could accelerate our strategy as a significant corporate and retail bank in Nigeria and a Pan-African financial services champion,” said Wigwe.