Access and Diamond Banks today received the nod of regulatory agencies to fuse. The approval of the merger by the Central Bank of Nigeria, CBN, and the Securities and Exchange Commission, SEC, was announced by the two banks in separate corporate disclosures issued on the Nigerian Stock Exchange, NSE.
“Access Bank Plc is pleased to announce that the bank has received the final approval of both the Central Bank of Nigeria, CBN, and the Securities and Exchange Commission, SEC, to the proposed scheme of merger between the bank and Diamond Bank Plc,” a statement by the bank said.
“The scheme is subject to judicial sanction by the Federal High Court. We will provide further update to the market upon receipt of court sanctions of the scheme.”
The corporate union between the two banks will kick off on Monday, April 1.
The merger terms will allow Diamond Bank transfer all its assets, liabilities and undertakings to Access Bank and the entire issued share capital of Diamond Bank would be cancelled.
The benefit for Diamond Bank is that its shareholders will receive a cash consideration of N1 per share and two ordinary shares of the enlarged Access Bank for every seven ordinary shares of Diamond Bank held as at the effective date.