MON, JANUARY 21 2019-theG&BJournal-Diamond Bank Plc have obtained the Central Bank of Nigeria and the Securities & Exchange Commission’s Approval-in-Principle for the proposed Scheme of Mergers with Access Bank Plc. The news was communicated to the market through a letter signed by the company secretary/Legal Adviser, Uzoma Uja and in keeping with the promise of updating the market with new development.
According to Diamond Bank, the Scheme is also subject to the approval of shareholders of Diamond Bank Plc and Access Bank Plc at a Court-Ordered Meeting as well as the sanction of the Federal High Court.
Access Bank and Diamond Bank jointly announced in mid December 2018 a N23.1 billion all-stock merger agreement.
Access Bank management unveiled the details of the deal which involves the 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.
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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