Nigerian Access Bank has completed the acquisition of Zambian Cavmont Bank, the Zambian arm of the Namibian financial services group Capricorn, for a nominal amount of 1 kwacha (USD 0.0014) per share. Access Bank is thus seeking to strengthen its operational base on the continent through this operation announced in August 2020.
With the merger which should take place before the end of January 2021, Access Bank Zambia will benefit from the reputation of the parent company to strengthen itself and capitalize on its experiences. In a statement to the Nigerian Stock Exchange, the bank said increasing its presence in Zambia remains a strategic priority and, with the completion of the proposed merger with Cavmont, that it “looks forward to realizing the synergies of the transaction and continue to grow the combined platform for the benefit of all stakeholders ”.
Under the terms of the agreement, Access Bank Zambia will acquire all of the issued ordinary share capital, assets and liabilities of Cavmont Bank while Capricom Group Limited, the ultimate majority shareholder of CCHZ will invest at least ZMW 300 million (16 , $ 5 million) of preferred stock in Access Bank Zambia. Capricorn will hold preferred shares in the expanded Access Bank Zambia for a period of five years, after which the preferred shares will be acquired by Access Bank Plc.