Access Bank guides Diamond’s shareholders ahead implementation of scheme consideration

Access Bank
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Tier 1 lender, Access Bank, has advised shareholders of the recently merged Diamond Bank ahead of the implementation of scheme of merger consideration.

In a statement filed with the Nigerian Stock Exchange (NSE) on Tuesday, the bank said that shareholders of Diamond Bank are required to take the necessary steps to ensure the accuracy of their personal details including full name, address, email address, mobile number and bank verification number with the registrars of Access Bank.

Consequently, the Tier-one lender requested that the shareholders download and complete the ‘’Diamond Bank Shareholder Mandate Form”, available from the “Downloads” tab on the website of United Securities Limited.

The completed Shareholder Mandate Forms, according to the release, may be returned online or directly to the offices of United Securities Limited.

Since Wednesday last week, trading in the shares of Diamond Bank has been placed on full suspension by the NSE in order to determine the bank’s shareholders eligible to receive the scheme consideration.

Based on the agreement reached by the Boards of Access Bank and Diamond Bank as contained in the scheme of merger, shareholders of Diamond Bank will be receiving a consideration of N3.13 per share, comprising of N1.00 per share in cash and the allotment of two new Access Bank ordinary shares for every seven Diamond Bank ordinary shares held as at the implementation date.

The cash and share consideration of the scheme would see Diamond shares converted to Access as the former which was listed on the domestic bourse on May 27th 2005 is delisted from the Exchange.

What remains following the court sanction that completed the merger is the brand refresh and unveiling of the new logo.

Access Bank has marked April 2019 to integrate both organisations and processes while it is optimistic of realising efficiency and positioning for growth before the year runs out.

At the close of trading on Tuesday, shares of Access bank rose 0.78 per cent to N6.45 bringing the bank’s valuation to N185.14 billion.

Financials of the bank for the 2018 full year show that profit rose by 58 per cent on the back of gains in investment securities and supported by lower income tax expense.

The bank recorded an after-tax profit of N94.98 billion in 2018 compared with N60.09 billion in the corresponding period of 2017.

Year on Year, pre-tax profit increased by 32 per cent to N103.19 billion from N78.17 billion posted for 2017 full year.

Access Bank’s impairment charges dropped 57 per cent to N14.66 billion from N34.47 billion, and total assets rose 21 per cent to N4.95 billion, while customer deposits increased by 14 per cent to N2.57 billion.

Meanwhile, as at the close of trading on Monday, Diamond Bank was yet to release its results for the 2018 financial year.

 

SEGUN ADAMS

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