Access Bank Plc spreads tentacles, to acquire Zambian Bank

As parts of its growth plans in 2020, Access Bank Plc, through its subsidiary in Zambia, Access Bank Zambia Ltd is in advanced discussions with Cavmont Capital Holdings Zambia Plc. regarding possible merger of Cavmont Bank Limited.

Earlier in the year, the bank also claimed that it received approval from the Central Bank of Nigeria to acquire majority equity shares in Transnational Bank Plc, based in Kenya.

The bank, which is one of Nigeria’s largest bank by assets, acquired Diamond Bank Plc in a move that made it the largest bank by customer base in Nigeria.

In its latest disclosure details contained in in a corporate disclosure which was duly signed by the Company Secretary, Mr. Sunday Ekwochi, and released by the Nigerian Stock Exchange, Access Bank Plc said its wholly-owned subsidiary in Zambia, Access Bank Zambia Limited has entered into exclusive discussions with Cavmont Holdings Zambia Plc (“Cavmont Capital”) regarding a potential transaction between Access bank Zambia and Cacmont Bank Limited (“Cavmont Bank”), a wholly-owned subsidiary of Cavmont Capital.

The potential transaction relates to the sale of 100 per cent of Cavmont Capital interest in Cavmont Bank to Access Bank Zambia.”

The bank has, however, noted that there are no guarantees as to whether the transaction pans out or not. “There can be no certainty that a transaction will be agreed, nor as to the terms of any such agreement. The completion of a transaction would be subject to formal regulatory approvals. Access Bank will update the market as appropriate and in accordance with its disclosure obligations.” It also advised shareholders accordingly, to exercise caution when dealing in Access Bank’s securities until a full announcement is made.

After its merger with Diamond Bank, it acquired 100 per cent of Kenya’s Transnational Bank Plc and its 28 branches, as the Central Bank of Kenya (CBK). Three months later, it also notified the Nigerian Stock Exchange of its intention to establish a subsidiary in Cameroon.

Access Bank Plc. recorded a profit after tax of N40.9 billion in the first quarter period ended March 31st, 2020. This was bolstered by an increase in Net interest income which stood at N72.2 billion, indicating a 27 per cent increase compared to N56.8 billion that was recorded in Q1 2019.