Access Bank has completed the acquisition of Zambian Cavmont Bank Ltd, in a bid to strengthen its operational base in the continent.
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 Bankโs secretary, Sunday Ekwochi and sent to the Nigerian Stock Exchange, as seen by Nairametrics.
It had earlier been reported 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.
What this means: The deal is a highly complementary transaction that is expected to combine Access Bank Zambiaโs wholesale and trade finance capabilities with Cavmont Bankโs retail and commercial banking operations.
In addition, the deal has the potentials 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.
What you should know:
As part of the terms and conditions of the deal, it was learnt that 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 ZMW300 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).
What they are saying
Excerpts of the press release read thus: โโSequel to our announcement of August 6, 2020, the Board of Access Bank Plc (โโthe Bankโ) today announces that its Zambian subsidiary, Access Bank (Zambia) Limited has completed the acquisition of Cavmont Bank Limited (โโCavmontโโ), following fulfilment of the key conditions precedent including regulatory approvals.
โโGrowing 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.
