Nigeria-based Access Bank recently agreed to purchase Nigeria’s Diamond Bank for cash totaling NGN 72.5 billion (USD 199 million) plus stock in Access Bank. Diamond Bank shareholders will receive the equivalent of NGN 3.13 per share (USD 0.01), of which NGN 1 (USD 0.003) will be conveyed in cash and the remainder will take the form of shares in Access Bank. Diamond Bank’s listings on the Nigerian and London Stock Exchanges will be cancelled.
Diamond Bank is a commercial bank that was established in Nigeria in 1990 and operates in three business segments: retail banking, corporate banking and the public sector. Its subsidiaries are Diamond Securities Limited, Diamond Pension Funds Custodian Limited; Diamond Mortgages Limited; and ADIC Insurance Limited, which formerly was known as the African Development Insurance Company. The company’s financial inclusion products include a service that allows small-scale merchants to accept payment cards and Beta savings accounts, which offer reduced documentation requirements. As of 2017, Diamond Bank reports total assets of NGN 1.7 trillion (USD 4.7 billion), customer deposits of NGN 1.1 trillion (USD 3 billion) and a gross loan portfolio of NGN 790 billion (USD 2.2 billion).
Established in 1989, Access Bank provides institutional, commercial and retail banking services via 310 branches in nine African countries and the UK. The firms non-banking subsidiaries are: (1) United Securities Limited; (2) Access Homes and Mortgages Limited; and (3) Access Investment and Securities. Its product lineup includes W Power Loans, which are “designed to close the financing gap for female owned businesses” and can be used for working capital as well as asset purchases. As of 2017, Access Bank had total assets of NGN 4.1 trillion (USD 11.2 billion), a gross loan portfolio of NGN 2.1 trillion (USD 5.7 billion) and deposits of NGN 2.2 trillion (USD 6 billion).
By Michelle Fleming, Research Associate
Sources and Additional Resources
Diamond Bank press release
https://www.diamondbank.com/statement-regarding-scheme-merge-access-bank/
Access Bank homepage
https://www.accessbankplc.com
Access Bank financial information
https://www.accessbankplc.com/AccessBankGroup/media/Investors/Annual-Reports/2017-Annual-Report.pdf
Diamond Bank homepage
https://www.diamondbank.com
Diamond Bank financial information
https://www.diamondbank.com/wp-content/uploads/2018/08/2017-Annual-Report-1.pdf
MICROCAPITAL BRIEF: Nigerian Diamond Bank Partners with African Guarantee Fund to Lend $25m to Micro-, Small, Medium-Sized Enterprises (MSMEs)
https://www.microcapital.org/microcapital-brief-nigerian-diamond-bank-partners-with-african-guarantee-fund-to-lend-25m-to-micro-small-medium-sized-enterprises-msmes/
MICROCAPITAL BRIEF: Nigeria’s Access Bank, FMO Launch Female Leadership Programme in Ghana
https://www.microcapital.org/microcapital-brief-nigerias-access-bank-fmo-launch-female-leadership-programme-ghana/
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