This Is How Access Bank Plans To Pay For Diamond Bank
It is no longer news that access bank has bought its rival diamond bank. What no one knows yet is how much it is going to cost Access bank to pull of the deal.
However, analysts are estimating it could be in the neighbourhood of 200 million dollars.
And guess what, Access bank is going to raise that money from its existing shareholders next when it concludes the acquisition deal.
The proposed fund raising, according to Financial Times, is to keep its capital well above regulatory requirements.
Meanwhile, the management of the bank has yet to officially confirm this report.
FT quoted bankers handling the rights issue to have said the move would enhance the new entity’s capital base and business development.
The proposed business combination deal between the two banks will result to a combined entity with total asset size of 6.108 trillion naira.
This, according to the third quarter unaudited results of both banks for the period ended September 30, 2018, means that the new combined entity will have the largest asset size among the banks in the country, thereby displacing Zenith Bank Plc and Guaranty Trust Bank Plc, respectively.
While Zenith Bank reported total assets of 5.618 trillion naira in its unaudited results for the third quarter of 2018, GTBank’s stood at 3.443 trillion naira.
Similarly, when the merger deal is concluded, the new institution would hold total customer deposits of 3.543 trillion naira.
This is slightly higher than that of Zenith Bank, which was 3.275 trillion naira as at the end of September 2018, as well as GTBank’s total customer deposit of 2.239 trillion naira as at the end of the third quarter of 2018.
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