Access Bank concludes acquisition of Zambian Cavmont Bank
In its bid to expand and diversify in order to strengthen its operational base in various parts of Africa, Access Bank Plc has completed the acquisition of Zambian Cavmont Bank Ltd, having reached a definitive agreement with Cavmont Capital Holdings Zambia Plc (CCHZ), its established subsidiary in Cameroon, and after acquiring that of Kenyan bank.
The bank announced this following the fulfilment of pre-requisite conditions, including regulatory approvals.
The bank’s secretary, Sunday Ekwochi, who signed the statement and sent to the Nigerian Stock Exchange, said: “Sequel to our announcement of August 6, 2020, the Board of Access Bank Plc announces that its Zambian subsidiary, Access Bank (Zambia) Limited has completed the acquisition of Cavmont Bank Limited, following fulfillment of the key conditions precedent, including regulatory approvals.”
Following this development, the financial giant also stated that the merger between the aforementioned firms is set to take place before the end of January 2021, according to the statement. The bank also added 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.
“Growing 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,” the statement added.
The deal was originally scheduled to be completed by fourth quarter 2020, but was later moved to the first quarter of 2021.
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