Diamond, Access bank confirm merger

After weeks of denial by both banks, the Board of Diamond Bank
Plc, today announces that, following a strategic review leading to
a competitive process, it has selected Access Bank Plc as the
preferred bidder with respect to a potential merger of the two
banks that will create Nigeria and Africa’s largest retail bank by
customers.

The Board of Diamond Bank believes that the merger is in the
best interest of all stakeholders including, employees, customers,
depositors and shareholders and has agreed to recommend the offer
to Diamond Bank’s shareholders.

Completion of the merger is 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 of N1.00 per share in
cash and the allotment of 2 New Access Bank ordinary shares for
every 7 Diamond Bank ordinary shares held as at the Implementation
Date.

Immediately following completion of the merger, Diamond Bank
would be absorbed into Access Bank and it will 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.

Diamond Bank expects the transaction to complete in the first
half of 2019.

Uzoma Dozie, the Chief Executive Officer of Diamond Bank, said:
“The proposed combination with Access Bank will create one of
Africa’s leading financial institutions.

“There is a clear strategic rationale for the proposed merger
and strong complementarities between the two institutions. While
Diamond Bank has pioneered Nigeria’s largest technology-led retail
banking platform, Access Bank is one of Nigeria’s leading
full-service commercial banks.”

Herbert Wigwe, CEO of Access Bank, said: “Access Bank has a
strong track record of acquisition and integration and has a clear
growth strategy. Access Bank and Diamond Bank have complementary
operations and similar values, and a merger with Diamond Bank, with
its leadership in digital and mobile-led retail banking, could
accelerate our strategy as a significant corporate and retail bank
in Nigeria and a Pan-African financial services champion.”

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