Access Bank Plc has announced that its Zambian subsidiary (Access Bank, Zambia) has completed the acquisition of Cavmont Bank Limited, following the fulfilment of pre-requisite conditions, including regulatory approvals.
The tier-1 bank made the disclosure through a press statement signed by the Bank’s secretary, Sunday Ekwochi and sent to the Nigerian Stock Exchange.
Recall that Access Bank had reached a definitive agreement with Cavmount Capital Holdings Zambia Plc (CCHZ) to acquire Cavmount Bank Ltd, in a bid to diversify and expand its operational base in the continent.
In a recent development, the financial giant through a press statement released today stated that the merger between the aforementioned firms is set to take place before the end of January 2021.
The deal is a highly complementary transaction that is expected to combine Access Bank Zambia’s wholesale and trade finance capabilities with Cavmont Bank’s retail and commercial banking operations.
In addition, the deal has the potential to enlarge Access Bank Zambia as a stronger and well-capitalized banking franchise with improved scale and capacity to deliver sustainable and best-in-class financial services in the Zambian market.
As part of the terms and conditions of the deal, Access Bank Zambia will acquire the entire issued ordinary share capital, assets and liabilities of Cavmont Bank while Capricom Group Limited, the ultimate majority shareholder of CCHZ will invest at least ZMW 300 million ($16.5 million) of preference shares into Access Bank Zambia.
Capricorn will hold preference shares in the enlarged Access Bank Zambia for a period of five years, after which the preference shares will be acquired by Access Bank Plc.
The deal was originally scheduled to be completed by Q4 2020, but was later moved to the first quarter of 2021 (Q1, 2021).
Excerpts of the press release read thus: ‘’Sequel to our announcement of August 6, 2020, the Board of Access Bank Plc (‘’the Bank’) today announces that its Zambian subsidiary, Access Bank (Zambia) Limited has completed the acquisition of Cavmont Bank Limited (‘’Cavmont’’), following fulfilment of the key conditions precedent including regulatory approvals.
‘’Growing our presence in Zambia remains a strategic priority for Access Bank and with the conclusion of the proposed merger with Cavmont, the Bank looks forward to realising the synergies from the transaction and achieving further growth of the combined platform to the benefit of all stakeholders.’’
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