PRESS STATEMENT – Diamond Bank Plc Statement regarding scheme to Merge with Access Bank

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

PRESS STATEMENT - Diamond Bank Plc Statement regarding scheme to Merge with Access Bank lailasnews 2


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.

The offer represents a premium of 260% to the closing market price of N0.87 per share of Diamond Bank on the Nigerian Stock Exchange (“NSE”) as of December 13, 2018, the date of the final binding offer.

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 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. Consolidation in the Nigerian banking industry is an inevitable, natural progression in a sector where the gap between Tier 1 and Tier 2 banks has been widening and scale has become critical; where technology will disrupt the traditional business model while enabling broader financial inclusion.

The board of Diamond Bank believes that the proposed combination of the two operations provides an exciting prospect for all stakeholders in both businesses and will create a financial institution with the scale, strength and expertise to capitalise on the significant opportunities in Nigeria and sub-Saharan Africa more broadly.”

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. Access Bank has a strong financial profile with attractive returns and a robust capital position with 20.1% CAR as at 30 September 2018. We believe that this platform, together with the two banks’ shared focus on innovation, financial inclusion and sustainability, can bring benefits to Access Bank and Diamond Bank customers, staff and shareholders.”

Exotix Capital acted as international financial advisor to Diamond Bank, and Templars acted as Nigerian legal counsel.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU 596/2014) (“MAR”) and is disclosed in accordance with Diamond Bank’s obligations under Article 17 of MAR.

About Diamond Bank Plc

Diamond Bank Plc was incorporated on December 20, 1990 and began operating as a private limited liability company on March 21, 1991.  Ten years later, in February 2001, Diamond Bank became a universal bank. In January 2005, Diamond Bank became a public limited company following a highly successful Private Placement share offer which substantially raised the Bank’s equity base. In May 2005, the Bank was listed on The Nigerian Stock Exchange.

Today, Diamond Bank is the fastest growing retail bank in Nigeria with a track record of high quality banking solutions for customers. It is the lead driver of financial inclusion and enhanced customer experience through innovation and technology. Regarded as supporter of lifestyle trends, its mobile banking app, “Diamond Mobile” currently has over 2 million active subscribers on its platform. Diamond Bank has over the years leveraged on its underlying resilience to grow its asset base and to successfully retain its key business relationships.

Diamond Bank has also played a leading role in partnering with domestic and International bodies such as Women’s World Banking, Bill and Melinda Gates Foundation, MTN etc. to create easy access to financial services for the unbanked.

About Access Bank Plc

Access Bank is a full-service commercial bank operating through branches and service outlets located in major centres primarily across Nigeria and sub-Saharan Africa, as well as the United Kingdom (extension to United Arab Emirates (Dubai)), with representative offices in China, Lebanon, and India. The Group provides a wide range of banking and other financial services to over 10 million customers from 397 branches and service centres. Listed on the Nigerian Stock Exchange (1998) with its Bond instrument listed on the Irish Stock Exchange (2016), the Bank serves its various markets through four business segments: Personal, Business, Commercial and Corporate & Investment Banking.

 

262 Comments

  1. Am still asking can i withdrawn my previous minimum bal of to in bank now access bank because acceess bank minimum bal is 1k

  2. Since you guyz said it’s of best interest, lets believe so and hope things turn out well and as planned

  3. Diamond bank merging with access bank is a nice business strategy.they can go ahead with the plan, two great banks.

  4. When access bank came up nobody believed they will get this far. But here they are today waxing strong. Is a development though I never liked Access bank because of their excess charges.

  5. I love diamond bank, but Access bank don’t operate on a zero account..so what will they do about us, will our atm cards be changed to Access bank? I don’t like this o

  6. So all diamond bank account owners automatically own access bank accounts. Wonder what happens to people that have both accounts before now. Good one by Access bank though

  7. I just wan to belI’ve that this merging is to the interest of the stakeholders of diamond bank oo.

  8. A lots of customers patronise Diamond because they operate zero acct. If they merge and the system is not as what Diamond operate. A lots may leave them.

  9. Am happy about this merger plus share, I need to dance python dance because my shares numbers go increase again, ACCESS BANK, THANK U FOR BANKING WITH US.

  10. Since is for the best interest of the customers and public at large to ensure safety of there capitals and savings, is a bold step and encouraging. More explanations is required to ease the tension and fear too. Good luck.

  11. The Merger will surely help the two banks and hope they put their workers and stakeholders in consideration.

  12. Well, I don’t have account with the two banks but I hope It benefits all the stakeholders and stress free.

  13. I hope is for the best because i use to thing that they merges bank that is not doing well withe one that is doing well , this two banks are doing well.

  14. I love diamond bank and I have an account with them, if merging will bring more efficacy to both banks and if it won’t affect the stakeholders in anyway, then they should go ahead

  15. Ok well however they’re doing it I hope it benefits them and us as the customers good luck to them though

  16. I really don’t like the Bank right from time….since they are not too well equipped the way I want!! And they even find it difficult to meet up with other Banks as well

  17. Diamonds bank is proactive and led by competent men, I trust the merger will profit the organization more.

  18. Nawa oo how will they do it. I have diamond bank and access bank accounts. So I will now have two accounts in one bank. This people like causing problem for people.

  19. Well I love Access Bank but I hope this will not lead to sacking of Diamond bank staff.? Please the management of Access bank should take note of this.

  20. How art the mighty fallen. I hope access bank policies are favourable oh. It’s better than folding up completely . I pray this will not Lead to retrenchment of staff oh

  21. Wishing both banks a successful merger transition devoid of great loss both in capital and human resources

  22. I love acess bank…hope if you merge with diamond bank our service will still remain how it is now..

  23. C’ mon u people should make it clear that u can’t manage the bank again or the bank has been sold 2 access bank n stop beating around the bush

  24. That is good but hope it will not affect those that have account with diamond bank and also all those access bank charges will be minimized.

  25. If there must be a merger, then Access Bank is a sure bet. I wish them all the best in their future endeavors.

  26. Access bank needs to improve their mode of operation and network to be able to successfully absorb Diamond bank.
    Access bank is a good bank but of recent they have not doing well.They have issues with network coverage and unnecessary deduction fees on transfer and mobile recharge cards fees deduction.
    I still love them

  27. This is a good decision and it is an indication that our banking sector is sanitized really to avoid liquidation.

  28. Well am not an accountant so I find those benefits hard to understand but I believe with time I will meanwhile for now I pray its going to have a good growth and harmony and success

  29. May God help us in this nation, so this hungry affect bank also, well it will be a great profit for access

  30. When access bank came up nobody believed they will get this far. But here they are today waxing strong. Is a development though I never liked Access bank because of their excess charges.

  31. If this merger should be successful I believe they will be the best Retail bank not only in Nigeria but in Africa too.

  32. It is very awesome that these banks are working hand in hand to do something that will benefit the public.

  33. Is ok , the should go ahead access is good, the National bank idea of diamond bank, will be perfect now.

  34. Am very happy for access bank because everything about them is not okay but with diamond bank I think they will do a great job

  35. I think this idea or innovation is good and it will profit the management in the sense that it will yield more interest and income for the bank.

  36. Its going to be a good combination because these (Diamond and Access Bank) are the only banks i’m banking with

  37. A unique collabration that can enhance easy acess to improve man power in nigeria through the patnership.

  38. Merging of the two banks will be a very good thing. I just hope they won’t have issues at the end of it all.

  39. Hope this goes a long way to help those of us bank with access Bank because I have an account with access Bank.board of directors hope u have done your calculations well

  40. I am really disappointed. I have always seen Diamond bank as one of the foremost banks in the country. Too bad they’re thinking of merging

  41. Since is for the best interest of the customers and public at large to ensure safety of there capitals and savings, is a bold step and encouraging. More explanations is required to ease the tension and fear too. Good luck.

  42. Access banks is the best bank in Nigeria. They are reliable and also capable to offer their best to their customers.

  43. So this is true, I never expected a bank like Diamond to merge with another bank because their rate of growth is wonderful anyway the board of directors knows the best.

  44. I guess the Nigerian economy is becoming more and more worse forcing viable bank to think of mergers

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