Access Bank To Conclude Acquisition Of Zambia’s Cavmont By Q4

Access Bank Plc has entered an agreement for its  Zambian subsidiary, Access Bank Zambia(ABZ) to acquire  Zambia’s Cavmont Bank.

This was contained in a document on Thursday seen by THE WHISTLER.

The bank’s board had in July resolved to acquire Zamibia’s Cavmont Bank   to position ABZ   among the top ten in the country.

Access projected that the transaction would be completed during the fourth quarter of this year.

The bank said, “Access Bank (Zambia) Limited ABZ has entered a definitive agreement with Cavmont Capital Holdings Zambia Plc (CCHZ) regarding a proposed acquisition of Cavmont Bank Limited, a subsidiary of CCHZ and subsequent merger of Cavmont Banks operations into ABZ.”

Nigeria’s Access said the decision was still subject to relevant shareholders and regulatory approvals.

The Nigerian bank said based on the terms of the agreement, ABZ would acquire the entire ordinary share capital, assets and liabilities of Cavmont Bank.

Access said Capricorn Group Ltd, who are the ultimate majority shareholders in CCHZ, would invest at least $16.5mn to acquire preference shares in ABZ.

Capricorn will only hold the preference shares for five years after which they will be acquired by Access Bank Zambia, the bank said.

According to the Nigerian bank, the acquisition would complement its whole sale trade finance capabilities with Cavmont Bank’s retail and commercial banking operations.

Herbert Wigwe, Access Bank Group Managing Director said, “Access bank is focused on building the scale needed to become a leading bank in its key operating markets through leveraging the right partnerships.

He said the transaction underscores the bank’s approach, adding that it was another stepping stone towards delivering on its strategic aspirations to become the world’s most respected African Bank and Africa’s gateway to the world.

The Managing Director of Capricorn Group, Thinus Prinsloo, said that Access Bank had an impressive growth trajectory and geographical reach across Africa and internationally, adding that the deal was an “excellent strategic fit with Cavmont Bank’s presence in Zambia.”

He noted that the deal would strengthen the bank’s capital base and would  lead to sustainable growth in the long-run.