LUSAKA (Business Telegraph) – Access Bank Group is on a roll to increase its footprint in Africa and as such has taken to buy-off commercial banks across the continent. Recently, the Nigerian bank concluded purchase of Transnational Bank (Kenya). Not so far from this transaction in central Africa is another bank that the tier 1 lender has targeted, Lusaka Securities Exchange listed Cavmont Capital Holdings (ISIN:ZM0000000227). The success of this merger will be Zambia’s second M&A transaction in 4 years that will see Nigeria Stock exchange listed financial institution takeover Cavmont Capital Holdings Ltd, a deal estimated to close by 4Q20.
Read also: Access Bank Completes Acquisition of Kenya’s Transnational Bank
According to cautionary statement issued by the Lusaka Securities Exchange – LuSE, signed by Company Secretary Rita Mapara Ndhlovu, Shareholders are advised that Cavmont Capital Holdings Zambia PLC (“CCHZ”), a subsidiary of CGP, has signed a Share Purchase Agreement with Access Bank (Zambia) Limited (“Access Bank Zambia”), a subsidiary of Access Bank Plc, regarding a proposed merger of Access Bank Zambia and Cavmont Bank Limited (“Cavmont Bank”).
Read also: Access Bank in advanced talks over M&A with Cavmont Capital Holding Zambia
Capricorn Group Ltd – CGP owns 98.03% of Cavmont Capital Holdings Zambia -CCHZ, which owns 100% of the share capital of Cavmont Bank. Under the terms of the Share Purchase Agreement, Access Bank Zambia will acquire the entire issued ordinary share capital, assets and liabilities of Cavmont Bank. The transaction is expected to be completed during Q4 2020 and is subject to regulatory approvals from the key country regulators, local and regional competition authorities and approval from the CCHZ shareholders. On completion, Cavmont Bank will become part of Access Bank Zambia and operate under the Access Bank brand. The announcement released by CCHZ.
Read also: Capricorn announces divestment from troubled Zambian bank
“Access Bank Plc is an African banking group with an impressive growth trajectory and geographic reach across Africa and internationally. It is an excellent strategic fit with Cavmont Bank´s presence in Zambia and
will strengthen the capital base from which to achieve long-term sustainable growth,” Thinus Prinsloo, Group CEO of CGP, said.
Access Bank Zambia is subsidiary to Access Bank Nigeria with over 600 branches and service outlets spanning 3 continents and 12 countries and 31 million clients. The M&A is expected to boost the wholesale and trade finance capability of the joint resulting entity.
The Kwacha Arbitrageur.
