Nigerian multinational commercial bank, Access Bank Plc, is putting plans in place to acquire another financial institution as it bids to expand its base across the financial sector.
Reports suggest that institution is already in an advanced stage with the bank it wants to merge with
According to a statement, the company said Access Bank Zambia Limited, it’s subsidiary in Zambia, wants to merge with Cavmont Bank Limited.
It was gathered that Cavmont Bank, located in Lusaka, the capital of Zambia, provides banking services including in the areas of community banking, retail banking, investment, and corporate banking.
Established in 2004, the bank, it was gathered is worth over $100 million, with Cavmont Capital Holdings Zambia Plc, a firm listed on the Lusaka Stock Exchange (LUSE), having 100 per cent stake in the company.
Access Bank, in a notice to the Nigerian Stock Exchange (NSE) on Wednesday, said it plans to take over the 100 per cent interest of Cavmont Capital in Cavmont Bank.
Access Bank announces today that its wholly-owned subsidiary in Zambia, Access Bank Limited has entered into exclusive discussions with Cavmont Capital Holdings Zambia Plc regarding a potential transaction between Access Bank Zambia and Cavmont Bank Limited, a wholly-owned subsidiary of Cavmont Capital.
The potential transaction relates to the sale of 100 percent of Cavmont Capital’s interest in Cavmont Bank to Access Bank Zambia.
There can be no certainty that a transaction will be agreed, nor as to the terms of any such agreement. The completion of a transaction would be subject to formal regulatory approvals.
Access Bank will update the market as appropriate and in accordance with its disclosure obligations.
Accordingly, shareholders are advised to exercise caution when dealing in Access Bank’s securities until a full announcement is made.
Meanwhile, Access Bank, in 2019, completed its merger with the defunct Diamond Bank Plc, with the deal expected to make Access Bank, a formidable voice in the retail banking business.
Access Bank, Before the deal with the former Diamond Bank, had acquired Intercontinental Bank, one of the biggest financial institution in Nigeria several years ago.