Access Bank Plc has announced plans by its Zambian subsidiary to acquire Cavmont Capital Holdings Zambia Plc. The bank told shareholders about its plans for a possible Access Bank merger with Cavmont Bank Limited in Zambia.
The Nigerian Stock Exchange (NSE) disclosed the deal in a corporate disclosure which was duly signed by the Company Secretary, Mr. Sunday Ekwochi.
The disclosure by the bank read, “Access Bank Plc (“Access Bank”) announces today that its wholly-owned subsidiary in Zambia, Access Bank Zambia Limited (“Access Bank Zambia”) has entered into exclusive discussions with Cavmont Holdings Zambia Plc (“Cavmont Capital”) regarding a potential transaction between Access Bank Zambia and Cacmont Bank Limited (“Cavmont Bank”), a wholly-owned subsidiary of Cavmont Capital. The potential transaction relates to the sale of 100% of Cavmont Capital interest in Cavmont Bank to Access Bank Zambia.”
However, the Nigerian Stock Exchange (NSE) told Stakeholders, not to throw caution to the wind as no transaction has been agreed on yet.
According to the notice signed by Sunday Ekwochi, Access Bank company secretary, “There can be no certainty that a transaction will be agreed, nor as to the terms of any such agreement. The completion of a transaction would be subject to formal regulatory approvals.”
See Also: Nigerian Banks Performance Metrics
Access Bank Previous Mergers And Q1 2020 Earnings
Recall, that in 2019 there was an Access Bank merger with Diamond Bank Plc. A move that made it the largest bank by customer base in Nigeria.
Earlier in the year, the bank also claimed that it received approval from the Central Bank of Nigeria. An approval that sealed the acquisition deal of majority equity shares in Transnational Bank Plc, based in Kenya. It also notified the Nigerian Stock Exchange of its intention to establish a subsidiary in Cameroon.
Furthermore, the tier-1 bank recorded a profit after tax of N40.9 billion in Q1 2020. This was against the backdrop of an increase in net interest income which stood at N72.2 billion. This indicates a 27% increase that was recorded in Q1 2019 compared to N56.8 billion.
In its latest disclosure details, Access Bank said it will update the market as appropriate and in accordance with the disclosure obligations.
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