By John Okoh
Uduk
Shareholders of Diamond and Access banks are the only power that can determine their merger.
That is the verdict of Mrs Mary Uduk, Acting Director General of the Security and Exchange Commission, SEC, in an interview with Channels Television, monitored in Lagos on Wednesday.
She disclosed that except for a proposal of their intention, the capital market regulator was yet to receive a formal application from the banks on the merger.
She said: “ In terms of the merger of Diamond and Access banks, I can say that we have received a proposal of their intentions but not a formal application. But many persons have been asking about what would happen to the shareholders, particularly of Diamond Bank. The merger is in the hands of the shareholders depending on what the merger entails. So it is really in the hands of the shareholders”.
Mr. Uzoma Dizie, Chief Executive Officer of Diamond Bank, had on December 17, disclosed that the bank had chosen Access as merging partner after a diligent selection process by the bank’s Board of Directors.
“The proposed merger would involve Access Bank acquiring the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access Bank via a Scheme of Merger. Based on the agreement reached by the boards of the two financial institutions, Diamond Bank shareholders will receive a consideration of N3.13 per share, comprising N1 per share in cash,” he said, adding
“The offer represents a premium of 260 per cent to the closing market price of 87k per share of Diamond Bank on the Nigerian Stock Exchange (NSE) as of Dec. 13, 2018, the date of the final binding offer,” Dozie said. He said the bank’s shares would be absorbed into Access Bank at the completion of the merger and Diamond Bank would cease to exist under Nigerian law. “The current listing of Diamond Bank’s shares on the NSE and the listing of Diamond Bank’s global depositary receipts on the London Stock Exchange will be cancelled, upon the merger becoming effective,” he added )
