In separate notices sent to the Nigerian Stock Exchange (NSE) today, Access Bank and Diamond Bank both announced they had obtained final approval from the Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC) to the proposed scheme of merger.
What next? : The Scheme is subject to the judicial sanction of the Federal High Court.
Concluded steps: Shareholders of both lenders approved the merger at Extra Ordinary General Meetings (EGMs) held on the 6th of March, 2019.
The two banks formally began the merger process with an announcement in December last year. Nairametrics, however, broke the news prior to that.
Terms of the merger
- The proposed merger would involve Access 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.
- Based on this agreement by the boards of the two financial institutions, Diamond Bank shareholders will receive N3.13 per share.
- This will comprise a cash consideration of N1.00 per Diamond Bank share representing a total cash amount of N23.16 billion or $75.58 million.
- The allotment of 6.62 billion new Access Bank ordinary shares, representing the 2 new Access Bank ordinary shares for every 7 Diamond Bank shares.
Access bank closed at N5.80 in today’s trading session on the NSE, down 2.52%. Diamond Bank closed at N2.45, down 1.61%.