Diamond Bank Plc on Monday confirmed its merger with Access Bank Plc, in a move expected to be completed in first half of 2019.
CEO of Diamond Bank Mr Uzoma Dozie said in a statement that the board had selected Access Bank as the preferred bidder with respect to a potential merger of both banks.
Mr Dozie said the potential merger of the two banks would create Nigeria and Africa’s largest retail bank by customers.
He added that the transaction to be completed in the first half of 2019 was 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.
“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.
Dozie also said 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.
Access Bank CEO Herbert Wigwe said “Access Bank has a strong track record of acquisition and integration and has a cleargrowth 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.”
