Access Bank Plc says its Zambian subsidiary has completed the acquisition of Cavmont Bank Limited following fulfilment of “key conditions precedent including regulatory approvals.”
This was contained in a statement released on Wednesday and signed by Sunday Ekwochi, Access Bank company secretary.
In August 2020, the bank said it has entered into a definitive agreement with Cavmont Capital Holdings Zambia (CCHZ) regarding a merger and acquisition (M&A) of Cavmont Bank.
According to the statement, the merger of Cavmont into Access Bank Zambia will hold before the end of January 2021.
“The merger of Cavmont into Access Bank Zambia is expected to take place before the end of January 2021, following which Access Bank Zambia will emerge as a stronger and well-capitalised banking franchise with improved scale and capacity to deliver sustainable and best-in-class financial services in the Zambian market,” the statement read.
“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.”
Access Bank had said this M&A will place its Zambian subsidiary as one of the top 10 banks in Zambia, adding that Access Bank Zambia will acquire the entire issued ordinary share capital, assets and liabilities of Cavmont Bank.
Meanwhile, Capricorn Group Limited, the ultimate majority shareholder of CCHZ, will invest at least $16.5 million of preference shares into Access Bank Zambia.
It, however, said Capricorn will hold preference shares in its Zambian subsidiary for a period of five years after which the preference shares will be acquired by Access Bank.