Access Bank (Zambia) Limited has completed the acquisition of Cavmont Bank Limited, according to a corporate release by the parent company, Access Bank Plc.
According to the notification on the Nigerian Stock Exchange seen by Investogist, Access Bank (Zambia) Limited has completed the acquisition of Cavmont Bank Limited, following fulfillment of the key conditions precedent including regulatory approvals.
Access Bank had on Wednesday 8, July, announced that its wholly owned subsidiary in Zambia, Access Bank Zambia Limited was in advanced discussions with Cavmont Capital Holdings Zambia Plc regarding a potential transaction between Access Bank Zambia and Cavmont Bank Limited, a wholly owned subsidiary of Cavmont Capital.
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On Thursday 6th August, 2020, the Board of Access Bank Plc announced that ABZ has entered into a definitive agreement with Cavmont Capital Holdings Zambia (CCHZ) Plc, regarding the proposed acquisition and subsequent merger of the operation of Cavmont Bank into Access bank Zambia.
Under the proposed agreement which was at the time subject to the approval of the “relevant shareholders”, Access Bank Zambia will acquire the “entire issued ordinary share capital, assets and liabilities of Cavmont Bank.”
According to the agreement, Capricorn Group Limited, the ultimate majority shareholder of CCHZ, will invest at least $16.5 million of preference shares into ABZ. The preference shares will be held by Capricorn for five year period, after which it will be acquired by Access Bank Plc.
Having completed the acquisition, the merger of Cavmont into Access Bank Zambia is expected to take place before the end of January 2021, following which Access Bank Zambia will emerge 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.
ACCESS stated that growing its 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 realizing the synergies from the transaction and achieving further growth of the combined platform to the benefit of all stakeholders.
By; Nnamdi M.