Access Bank pass Forward Diamond Bank Takeover by Two Months

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……Lender looking to complete acquisition of rival in April
…….Cancels 75 billion naira rights issue planned for first half
In what it seems to be in hurry in the taking over process, Access Bank Plc, which plans to buy Diamond Bank Plc to become Africa’s largest retail lender by customers, has saying it will conclude the transaction about two months earlier than initially expected.
The deal, which was set to close in June, earlier will be completed in the second quarter, the Lagos-based lender said on Thursday.
Access Bank also canceled a planned 75 billion naira ($207 million) rights issue as it’s no longer needed to meet the central bank’s minimum capital thresholds, Chief Executive Officer Herbert Wigwe said on an investor call.
Amehnews recall that Access Bank management agreed last year to buy Carlyle-backed Diamond Bank in a deal worth about $200 million.
Access Bank disclosed that it last week it obtained “approval-in-principle” from Nigeria’s Securities and Exchange Commission and the Central Bank of Nigeria to proceed with the merger.
By the conclusion of the deal, Access’s assets could swell to about $17 billion from $12.5 billion, according to Bloomberg calculations. Zenith Bank Plc is currently the largest Nigerian lender, with $15.4 billion of assets.
Within the process, Access Bank’s shares rose 6.2 percent to 6 naira at close of trading in Lagos, while Diamond Bank climbed 0.5 percent to 2.10 naira awaiting shareholders’ vote on the transaction on March 5.
Meanwhile the central bank of Nigeria said monetary policy meeting Holds Key Rate at Record High Before Presidential Vote and ‘Resurgence’ of inflation is a concern for the central bank
MPC sees economy expanding by 2.28% in 2019, governor says
Shortly after the meeting, Nigeria’s central bank disclosed held its key rate at a record high as it warned of rising inflationary pressures, it said.
The decision to retain the rate at 14 percent was unanimous, Governor Godwin Emefiele told reporters Tuesday in the capital, Abuja.
Key Insights
By keeping the rate at this level for more than two years, the bank has sought to fight inflation, which has been outside its target range of 6 percent to 9 percent since May 2015. Price growth accelerated to a seven-month high in December.
Price risks are expected to remain elevated in the first half of the year due to an increase in spending ahead of general elections next month. Also “resurgence” of inflation is a concern for the bank, Emefiele said.
Policymakers may also deregulate the fuel industry and plan to raise the national minimum wage by 66 percent to 30,000 naira ($83), which could add to pricing pressures.
The central bank’s use of open-market operations to protect the naira and boost reserves will likely continue through the year.
The MPC sees the economy expanding 2.28 percent this year, Emefiele said.
That compares with 2 percent forecast by the International Monetary Fund, and 2.2 percent estimated by the World Bank

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