Access Set To Acquire Diamond Bank – Report —

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There are indications that Access Bank Group is close to acquiring Diamond Bank Plc.

A senior official of Access Bank, who spoke on condition of anonymity on Sunday, said the banks were still in acquisition talks, which had not yet been finalized, according to The PUNCH.

“I can confirm that there is an acquisition process in progress but we need to wait for the outcome if it is eventually concluded,” he stated.

Issac Okoroafor, the Director, Corporate Communications, Central Bank of Nigeria (CBN) said, “We are aware that there have been meetings but we are yet to receive any formal communication from the parties in that respect.”

Accoring to the report, Diamond Bank recently received the approval of the CBN to operate as a national bank with immediate effect following its application.

However, it was subject to the conclusion of the sale of Diamond Bank UK- DB UK Plc.

The Chief Executive Officer of the Bank, Uzoma Dozie, said with the approval, the bank will cease to operate as an international bank.

He said the move was part of Diamond Bank’s strategy to focus on Nigeria’s significant opportunities.

“The re-licensing as a national bank supports Diamond’s objective of streamlining its operations to focus resources on the significant opportunities in the Nigerian retail banking market, and the economy as a whole,” he stated.

He added that the move followed Diamond’s decision to sell its international operations, which included the disposal of its West African subsidiary in 2017 and Diamond Bank UK, the sale of which is currently in its final stage.

A report by The Cable said the bank recorded its worst month on record in November with share plunging to 0.61k per unit on November 30, 2018.

Diamond Bank’s Q3 2018 report had shown that the bank was under some financial stress with profit after tax falling from N3.9bn in 2017 to N1.6bn.

This impacted the bank’s earnings per share, which also dropped sharply from N17 in 2017 to N7 in 2018.

As at last week Wednesday, the bank had a share price of 0.95 per unit and a market capitalisation of N22bn.

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