Tier 1 lender, Access Bank, has completed the acquisition of Zambian Cavmont Bank Limited, as it seeks to expand its market horizon across the continent.
In a statement sent to the Nigerian Stock Exchange and signed by Sunday Ekwochi, the bank’s secretary, the lender said the merger between the two firms will take place before the end of January 2021, following the fulfillment of pre-requisite conditions, including regulatory approvals.
‘’Sequel to our announcement of August 6, 2020, the Board of Access Bank Plc (‘’the Bank’) today announces that its Zambian subsidiary, Access Bank (Zambia) Limited has completed the acquisition of Cavmont Bank Limited (‘’Cavmont’’), following fulfilment of the key conditions precedent including regulatory approvals.
‘’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.’’ Access Bank said.
The bank had earlier reached a definitive agreement with Cavmount Capital Holdings Zambia Plc (CCHZ) to acquire Cavmount Bank Ltd, in a bid to diversify and expand its operational base in the continent.
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The deal which was originally scheduled to be completed by Q4 2020, but was later moved to the first quarter of 2021, will combine Access Bank Zambia’s wholesale and trade finance capabilities with Cavmont Bank’s retail and commercial banking operations, with a potential to enlarge Access Bank Zambia 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 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 five years, after which the preference shares will be acquired by Access Bank Plc.
