Access Bank and
Diamond Bank Plc have reportedly obtained approval in principle from the
Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC)
on their proposed merger plans.
Access Bank’s Executive Director, Personal
Banking, Mr. Victor Etuokwu, disclosed in Lagos that CBN and SEC has granted
both banks’ approval in principle for the merger process. Etuokwu said the
banks are awaiting the final approval which would be granted after convening
shareholders meeting.
“So far, we have gotten approvals up to approval in principle. There are three approvals that we need for this process.
“The first one is the pre-order approval which is like the first approval, the next approval is the approval in principle.
“The final approval comes after approval in principle and it will come after you have convened your shareholders meetings,’’ Etuokwu said.
He further disclosed that the banks would convene shareholders meetings in February, noting that the approval would be taken to court once approved by the shareholders. Etuokwu said all the processes including final approval would be completed in the next 60 days. He said that the new bank would remain committed to retail and corporate banking to drive financial inclusion for desired growth and development.
“We need to invest in retail market to drive economic growth. This is what the new bank will do, a strong corporate and a strong retail bank,’’ he said.
On staff retrenchment, Etuokwu said the workers would be re-trained for different roles in case of overlapping.
“Staff will be retrained for new roles where there are overlaps, one of the branches can be converted to an e-branch or Automated Teller Machine (ATM) gallery,’’ he added.
Mr. Robert Giles, in charge of Retail, Diamond Bank said that integration of both banks had commenced for seamless service delivery, adding that ATMs of both banks could be used by customers at no cost, noting that they are committed at taking costs away from customers.
Access Bank’s Chief Executive Officer, Mr. Herbert Wigwe, at a joint news conference recently, said the bank had already finalised terms and obtained regulatory approvals for a Tier II capital issuance to raise $250 million available for draw down in January 2019.
He said that the
bank had also obtained “No Objection’’ from the CBN to undertake a Rights Issue
to raise up to N75 billion or $207 million in the first half of 2019. Wigwe
said that shareholder approvals and other regulatory approvals to that effect
would be obtained before the offer opens. He noted that the fund raising
exercise would accelerate the capital management plan to support retail growth
previously set out in the bank’s five-year strategy. Wigwe said that the bigger
entity was ready to absorb the staff of Diamond Bank at the completion of the
deal by end of June, without any disengagement.
– NAN