Access Bank Zambia (ABZ)Limited, a subsidiary of Access Bank Plc, has entered into a definite agreement with Cavmont Capital Holdings Zambia Plc, regarding a proposed acquisition of Cavmont bank Limited, a subsidiary of CCHZ.
With the business combination, there would be subsequent merger of Cavmont Bank Limited operations into Access Bank Zambia.
The proposed transaction, which remains subject to relevant shareholders and regulatory approvals, would position the enlarged ABZ as one of the top 10 banks in Zambia and create the momentum to advance its strategic objectives.
The management of Access Bank Plc said “this is a highly complementary transaction, combining AbZ’s wholesale and trade finance capabilities with Cavmont Bank’s retail commercial banking operations.”
Customers of the enlarged bank will benefit from greater security offered by what will be one of the most capitalised banks in Zambia with a more diversified products and service offering and a broader geographical footprint and infrastructure.
Under the terms of the agreement, ABZ would acquire the entire issued ordinary share capital, assets and liabilities of Cavmont Bank while Capricorn Group Limited, the ultimate majority shareholder of CCHZ would invest at least ZMW300 million ($16.5 million) of preference shares into ABZ, while Capricorn would hold preference shares in the enlarged ABZ for a period of five years after which the preference shares will be acquired by Access Bank Plc.
The transactions according Access Bank management would be completed during the fourth quarter of 2020.
In his remarks, the group managing director of Access Bank Plc, Herbert Wigwe, 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. This transaction underscores our approach and is another stepping stone towards delivering on our strategic aspirations of becoming the world’s most respected African Bank and Africa’s Gateway to the world.”