The bank’s headquarters in Lagos made this known in a statement signed by the Company Secretary, Sunday Ekwochi, which was issued to the Nigerian Stock Exchange (NSE), yesterday.
According to the statement by the Bank, the business takeover is a highly complementary one of which they intend to combine the subsidiary in Zambia’s wholesale and trade finance capabilities with Cavmont Bank’s retail and commercial banking operations.
The takeover bid even though far advanced, is still subject to relevant shareholder and regulatory approvals. The bank’s management are also hopeful that this move would help position it as one of the Top 10 banks in Zambia.
The Management also aim to see to it that customers from the enlarged bank will benefit from greater security offered by what will be one of the most capitalized banks in Zambia with a more diversified product and service offering and a broader geographical footprint and infrastructure.
The banks notification document to the NSE stated that, ‘’Subsequent to our announcement on July 8, 2020, the Board of Access Bank Plc announces today that its subsidiary, Access Bank (Zambia) Limited, has entered into a definitive agreement with Cavmont Capital Holdings Zambia Plc (CCHZ) regarding proposed acquisition of Cavmont Bank Limited, a subsidiary of CCHZ and subsequent merger of Cavmont Bank’s operations into Access Bank Zambia. The proposed transaction, which remains subject to relevant shareholder and regulatory approvals, will position the enlarged Access Bank Zambia as one of the top 10 banks in Zambia and create the momentum to advance its strategic objectives.’’
‘’Under the terms of the agreement, 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.’’
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