Finally, shareholders approve Access, Diamond Banks merger

…Diamond bank shareholders to receive a consideration of N3.13 per share

By Chioma Obinagwam

After much deliberations, shareholders of Access Bank Plc and Diamond Bank Plc have finally approved the proposed merger of both institutions.

This was effected at an Extraordinary General Meeting (EGM) held on Tuesday in accordance with the orders of the judiciary.

At the meeting, the shareholders of Access Bank Plc commended the merger while demanding that the Board of Directors should ensure that their value of investment is adequately maximised.

The shareholders who voted in support of the merger pulled 97.89 percent or 14,298,393,943 units of shares, while those against stood at 2.11 percent or 307,122,041 units shares.

Reacting to the merger, National Co-ordinator, Independent Shareholders Association of Nigeria (ISAN), Emeritus, Sir Sunny Nwosu, said, “We support the merger because it is not a regulatory induced merger and the great benefit we would derive in the value of our investment both in the short and long run.”

Confiance News had earlier reported that shareholders were likely to give a nod to the merger prior to the meeting based on reactions from a significant number of the banks’ shareholders.

https://confiance.com.ng/1526-2/

While explaining the benefit of the merger, Chief Executive Officer (CEO), Access Bank, Herbert Wigwe said, “After the merger, we would attract more opportunities such as trade finance from international partners. With the final merger of both banks and the status of the resulting entity as ‘the largest bank in Africa’s largest economy,’ this greatly bolsters the bank’s brand, opening doors of opportunity both in local and international markets.”

With the successful merger of both institutions, shareholders of Diamond Bank will receive 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 offer, the bank stated earlier, represents a premium of 260 percent to the closing market price of 87 kobo per share of Diamond Bank on the Nigerian Stock Exchange (NSE) as of December 13, 2018, the date of the final binding offer.

The merger, the bank noted, will form a leading Tier 1 Nigerian bank and the largest bank in Africa by number of customers, spanning three continents, 12 countries and 29 million clients (as big as the size of a country).

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