Access bank sweeps SERAS 2018 awards

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6 valid points you probably didn’t know about Access, Diamond Bank merger

6 valid points you probably didn’t know about Access, Diamond Bank merger

  1. The merger will potentially create Nigeria and Africa’s largest retail bank by customers.
  2. 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.
  3. Diamond Bank shareholders will receive N3.13 per share, comprising a cash consideration of N1.00 (one Naira) per Diamond Bank Share representing a total cash amount of N23,160,388,968 (twenty-three billion, one hundred and sixty million, three hundred and eighty-eight thousand, nine hundred and sixty-eight Naira), or US$ 75,588,736.84 (seventy five million, five hundred and eighty eight thousand, seven hundred and thirty six dollars and eighty four cents).
  4. Diamond Bank will receive an allotment of 6,617,253,991 (six billion, six hundred and seventeen million two hundred and fifty-three thousand, nine hundred and ninety-one) new Access Bank ordinary shares, representing the 2 new Access Bank ordinary shares for every 7 Diamond Bank shares.
  5. 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 as of December 13, 2018, the date of the final binding offer.
  6. Access bank and Diamond Bank both have almost the same staff strength of 2000+. Access bank has about 300 branches nationwide, while Diamond operates 270+. Looking into this, assets and liability will be inherited despite Access bank having a good track record of integration of the then Inter continental bank. Bottom line, Access bank will have to lay off Diamond bank staff especially top, middle and high level to save cost, this is however not expected immediately to avoid uproar but will definitely happen.

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