Access Bank moves to acquire Diamond Bank, signs deal
Emmanuel Thomas l Monday, Dec. 17, 2018
LAGOS, Nigeria – Access Bank Nigeria Plc and Diamond Bank have signed a Memorandum of Agreement on merger to create the largest retail bank in Nigeria and Africa.
Sunday Ekwochi, company secretary said Access Bank was selected as preferred bidder after a competitive process undertaken by the board of Diamond Bank.
“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.
Based on agreement reached by the board of the two financial institutions, Diamond Bank shareholders will receive N3.13 per share, comprising:
“1. A cash consideration of N1 per Diamond bank Share, representing a total cash amont of N23, 160, 388, 968 billion or US$ 75, 588, 736.84.
“2 Allotment of N6, 617, 253, 991 new Access Bank Ordinary shares, representing the 2 new Access Bank Ordinary shares for every 7 Diamond Bank Shares. The offer represents a premium of 260 percent to the closing market price of N0.87 of the closing Diamond Bank on the Nigerian Stock Exchange as of December 13, 2018.
