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The Securities and Exchange Commission (SEC) said it is awaiting the Access Bank Plc, Diamond Bank Plc merger application.This even as the Commission affirmed that it has been notified of the proposed merger between Access Bank and Diamond Bank.
Confirming the development, SEC explained that the agency was aware of the intention of Access Bank and Diamond Bank to go into a merger, adding that “It is a notice to merge, they have not merged yet. SEC is awaiting their application on the matter.The commission in a statement said, “The SEC received on Monday, December 17, 2018, notice of intention by Diamond Bank & Access Bank to merge. The Commission is currently waiting for their formal Application.
The board of Diamond Bank, Monday finally announced its merger with Access Bank Plc expected to be completed in first half of 2019. Both banks recently denied media reports of any merger.
Managing Director/ Chief Executive Officer of the bank, Mr. Uzoma Dozie, said in Lagos that the board had selected Access Bank as the preferred bidder with respect to a potential merger of both banks.
Dozie said the potential merger of the two banks would create Nigeria and Africa’s largest retail bank by customers, adding that the transaction to be completed in the first half of 2019 was in the best interest of all stakeholders.
Dozie said the completion of the merger was subject to certain shareholder and regulatory approvals. “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 the agreement reached by the boards of the two financial institutions, Diamond Bank shareholders will receive a consideration of N3.13 per share, comprising N1 per share in cash,” he said.
Dozie also said the transaction would include the allotment of two new Access Bank ordinary shares for every seven Diamond Bank ordinary shares held as at the implementation date. “The offer represents a premium of 260 per cent to the closing market price of 87k per share of Diamond Bank on the Nigerian Stock Exchange (NSE) as of Dec. 13, 2018, the date of the final binding offer.
According to him, the bank’s shares would be absorbed into Access Bank at the completion of the merger and Diamond Bank would cease to exist under Nigerian law.
“The current listing of Diamond Bank’s shares on the NSE and the listing of Diamond Bank’s global depositary receipts on the London Stock Exchange will be cancelled, upon the merger becoming effective,” he added.
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