LAGOS, NIGERIA: Diamond Bank Plc has announced receipt of the final approval of both the Central Bank of Nigeria and the Securities and Exchange Commission to the proposed scheme of merger between Diamond Bank and Access Bank Plc. “The scheme is subject to judicial sanction of the Federal High Court,” a statement issued to London Stock Exchange (LSE) said.
[the_ad id=”32940″]Access Bank and Diamond Bank announced in December 2018 their intention to merge, for a total consideration of N72.5 billion ($200 million). The merger would create the biggest Nigerian bank by assets, with N6.1 trillion ($16.7 billion) – ahead of the current leader, Zenith, with its N5.6 trillion ($15.4 billion).
U.S. private equity firm Carlyle owns a 17.75 percent stake in Diamond Bank which it bought for $147 million in 2014.
As per the terms of the agreement, Access Bank would acquire the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access. Diamond shareholders would receive a consideration of N3.13 per share, made up of N1 per share in cash and the allotment of two new Access shares for every seven Diamond shares held.