Diamond Bank Plc has refuted claims that investors are looking to acquire a stake in the bank.
The Carlyle-backed lender, in a note to BusinessDay Friday, said “the Company has not received an offer from an investor to inject cash” and that “its Board of Directors continue to review all strategic options on a regular basis.”
“Diamond Bank would also like to clarify it enjoys the support of its major shareholders, including The Carlyle Group and Kunoch Holdings who are, as ever, working in cooperation with the Board and management as appropriate to ensure the successful operation of its business in Africa’s most dynamic banking market,” the tier-two lender said.
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Diamond Bank’s stock gained 4.07 percent as at 1pm in Lagos, Friday, outperforming the banking index which was up 0.32 percent and stretching a three-day winning streak that started Wednesday, November 7, according to data from the Nigerian Stock Exchange (NSE).
Yields on the Bank’s $200 million Eurobond maturing in 2019 climbed to 15.67 percent, Thursday, according to FMDQ data.
Diamond’s biggest investor is U.S. private equity firm Carlyle Group LP, which owns 17.75 percent of the bank.
Kunoch DB Holdings, owned by Pascal Dozie, is the second largest shareholder in Diamond bank with a 9.25 percent stake. Diamond Capital Partners Ltd holds 6.10 percent of the bank while other investors hold 1 percent each and below.
Diamond Bank in the statement said it is in active discussions with regards to the appointment of new non-executive directors to the Board and, subject to CBN approval, these will be announced in due course.
“Diamond Bank’s recent Third Quarter results published on October 26, 2018 show the business continues to execute its clearly articulated tech-led retail strategy despite headwinds in the Nigerian economy,” the statement said.
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