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Access Bank in advanced discussions with Zambian Bank regarding merger

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Access Bank

The disclosure by the bank read, Access Bank Plc (“Access Bank”) announces today that its wholly-owned subsidiary in Zambia, Access Bank Zambia Limited (“Access Banks Zambia”) has entered into exclusive discussions with Cavmont Holdings Zambia Plc (“Cavmont Capital”) regarding a potential transaction between Access bank Zambia and Cacmont Bank Limited (“Cavmont Bank”), a wholly-owned subsidiary of Cavmont Capital. The potential transaction relates to the sale of 100% of Cavmont Capital interest in Cavmont Bank to Access Bank Zambia.” 

The bank has, however, noted that there are no guarantees as to whether the transaction pans out or not. 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 Banks will update the market as appropriate and in accordance with its disclosure obligations. It also advised shareholders accordingly, to exercise caution when dealing in Access Bank’s securities until a full announcement is made.

See Also: Nigeria’s debt rises to $79.5 billion, as debt to revenue ratio worsens

 In October 2019, the Bank from the first quarter of 2020, would expand its footprint across Africa. After its merger with Diamond Bank, it acquired 100% of Kenya’s Transnational Bank Plc and its 28 branches, as the Central Bank of Kenya (CBK). Three months later, it also notified the Nigerian Stock Exchange of its intention to establish a subsidiary in Cameroon. 

Access Bank Plc. recorded a profit after tax of N40.9 billion in the first quarter period ended March 31st, 2020. This was bolstered by an increase in Net interest income which stood at N72.2 billion, indicating a 27% increase compared to N56.8 billion that was recorded in Q1 2019. 

Its shares at market open today stood at N6.40, on the lower end of its 52-week range of N5.30 and N12.00. It’s price to earnings ratio was 2.24 and price to book, 0.3566 

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