The management of Access Bank Plc on Wednesday December 19 said the merger with Diamond Bank will not in any way add toxic assets to its books, adding that the latter has been asked to write off its bad loans.
With central bank of Nigeria (CBN) no objection and notifications to the Securities and Exchange Commission (SEC), Nigerian Stock Exchange (NSE), and National Pension Commission (Pencom), Access Bank is offering N3.13 in cash or (N1 and 2 of its shares for every 7 of Diamond Bank).
Herbert Wigwe, GMD, Access Bank said at the press briefing on the merger with Diamond Bank that “Access Bank has enough capital to consummate the transaction.”
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He said the bank is expecting tier 2 capital of $250million from its partners by this year end, adding that it will still seek shareholders’ approval for a $200million Rights Issue by next year.
“What we are seeing here is a combination of our asset pool. We will be leveraging Diamond Bank footprint in retail banking and its digital growth. Diamond Bank will also bring on board additional 17million of its customers to the enlarged institution,” Wigwe said.
“The new institution will reflect the strength of both institutions. This transaction will be value creating for shareholders. With respect to the management, the team in Diamond Bank that is responsible for running the retail function will be brought into the combined entity,” he added.
Uzoma Dozie, MD, Diamond Bank Plc said “we chose to look for partner that will address and create value for all stakeholders and shareholders.”
Roosevelt Ogbonna, deputy GMD, Access Bank said “post-merger the bank will continue to be responsible to its shareholders”.
IHEANYI NWACHUKWU
