With the aim of expanding its branch across Africa, Access Bank through its Zambian subsidiary, Access Bank Zambia (ABZ) is close to finalising their merger and acquisition agreement take over of Zambian bank, Cavmont Bank Limited.
The acquisition of Cavmont Bank will push Access Bank Zambia into the top ten commercial banks in Zambia, making it competitive in the country’s market,
“The proposed transaction, which remains subject to relevant shareholder and regulatory approvals, will position the enlarged ABZ as one of the top 10 banks in Zambia and create the momentum to advance its strategic objectives,” a statement signed by Access Bank company secretary, Sunday Ekwochi, on Thursday, disclosed.
While the agreement is still subject to regulatory approval of both countries’ central banks, both banks have already finalised on details of the agreement. Access Bank Zambian will acquire Cavmont Bank’s entire shares, assets and liabilities.
Meanwhile, the largest shareholder in Cavmont Capital Holdings Zambia, Capricorn Group Limited, will “invest at least $16.5 million of preference shares into ABZ.” holding the preference shares in Access Bank Zambia for a period of five years after which Access Bank will acquire the preference shares. The acquisition is expected to be completed in the fourth quarter of 2020.
Access Bank has been on a series of acquisition since 2019. Access Bank recently acquired another bank in Kenya, Transnational Bank Plc, in order to enter the Kenyan bank industry. Last year, Access Bank also acquired Nigerian bank, Diamond Bank, making it the largest bank in Africa by customer-size.