WED, MARCH 06 2019-theG&BJournal-Access Bank Plc and Diamond Bank Plc have effectively completed their tie-up after shareholders of both banks gave ascent in a court ordered meeting to the N23.1 billion all-stock merger agreement which was first revealed in December 2018.
99.98% of Diamond Bank shareholders voted in favour of the resolution contained in the Scheme of Merger while 97.89 % of Access Bank shareholder gave approval to the scheme following a court ordered meeting which took place March 5 2019.
The Central Bank of Nigeria (CBN) and the Securities Exchange Commission (SEC) had earlier, granted Approvals-in-Principle for the respective Schemes of Merger of both banks. Subject to final regulatory approvals, including the High Court Sanction of the Scheme, the combined business will start operating on April 1st, 2019.
Commenting on the votes by shareholders, Uzoma Dozie, Chief Executive Officer of Diamond Bank, said: “I’m happy that the shareholders of Diamond bank have supported this merger. The merger will bring together the complementary retail and corporate banking capabilities of two of Nigeria’s leading banks; creating Africa’s largest retail bank by customer base and Gate way to the World. In addition, the combined entity is poised to deliver more opportunities to customers and shareholders, leveraging on shared; yet distinct competencies.
‘’I am delighted that shareholders of both companies share our vision and have supported this merger,’’ Herbet Wigwe, Managing director/ CEO of Access Bank Plc said.
Diamond Bank will receive N3.13 per share comprising a cash consideration of N1.00 (one Naira) per Diamond Bank share representing a total cash amount of N23.160, 388,968(bn) or $75,588,736.84(mn) and an allotment of 6,617,253991(Bn) 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% to the closing market price of N0.87 per share of Diamond on the Nigerian Stock Exchange as of December 13 2018, the date of the final binding offer,’’ Access Bank said.
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