Access Bank completes acquisition of Zambian commercial bank
Cavmont Bank is expected to be merged into Access Bank before the end of January 2021.
Access Bank Plc, Nigeria’s largest retail bank, announced on Wednesday that its Zambian subsidiary, Access Bank Zambia, has completed the 100 per cent acquisition of Cavmont Bank Limited, a commercial bank in the southern African country.
In a notification signed by Access Bank's Company Secretary, Sunday Ekwochi, and posted by the Nigerian Stock Exchange (NSE), the bank said the transaction was completed subsequent to the fulfillment of key conditions, including regulatory approvals. Cavmont Bank is expected to be merged into Access Bank before the end of January 2021.
In August 2020 when Access Bank announced the proposed merger and acquisition (M&A) agreement with the holding company of the Zambian financial institution, Cavmont Capital Holdings Zambia Plc (CCHZ); the Nigerian bank said the deal would place Access Bank Zambia as one of the top 10 banks in the Zambian market. In the statement released today, Access Bank said its Zambian subsidiary would emerge stronger and well capitalised with improved scale and capacity to deliver sustainable and best-in-class financial services.
“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 bank said in its statement.
As part of the terms of the deal as previously reported, Capricorn Group Limited – the majority shareholder in CCHZ – will invest at least $16.5 million of preference shares into Access Bank Zambia. Access Bank Plc will then acquire the preference shares after a period of five years.
Headquartered in Lusaka, Cavmont Bank has 19 branches, six of which are located in Lusaka, the Zambian capital. Other branches are in various locations, including Chingola, Ndola and Kitwe. The bank was established in 2004, following a merger between Cavmont Merchant Bank Ltd and New Capital Bank Plc.
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