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Thursday, September 24, 2020

Access Bank acquires Cavmont Bank Ltd

Economy Access Bank acquires Cavmont Bank Ltd

Access Bank Zambia has reached a ‘definitive agreement’ with Cavmont Capital Holdings Zambia Plc (CCHZ) to acquire Cavmont Bank Ltd.

According to the statement by Access Bank, the deal is a highly complementary transaction that is expected to combine Access Bank Zambia’s wholesale and trade finance capabilities with Cavmont Bank’s retail and commercial banking operations.

The proposed transaction which, in the meantime is still subject to relevant shareholder and regulatory approvals, is also expected to better position Access Bank Zambia as one of the top 10 banks in Zambia.

Customers from the enlarged bank will benefit from greater security offered by what will be one of the most capitalized banks in Zambia with a more diversified product and service offering and a broader geographical footprint and infrastructure.

Access Bank on its notification stated, “Subsequent to our announcement on July 8, 2020, the Board of Access Bank Plc announces today that its subsidiary, Access Bank (Zambia) Limited, has entered into a definitive agreement with Cavmont Capital Holdings Zambia Plc (CCHZ) regarding proposed acquisition of Cavmont Bank Limited, a subsidiary of CCHZ and subsequent merger of Cavmont Bank’s operations into Access Bank Zambia.

The proposed transaction, which remains subject to relevant shareholder and regulatory approvals, will position the enlarged Access Bank Zambia as one of the top 10 banks in Zambia and create the momentum to advance its strategic objectives.’’

“Under the terms of the agreement, Access Bank Zambia will acquire the entire issued ordinary share capital, assets and liabilities of Cavmont Bank while Capricom Group Limited, the ultimate majority shareholder of CCHZ will invest at least ZMW300 million ($16.5 million) of preference shares into Access Bank Zambia. Capricorn will hold preference shares in the enlarged Access Bank Zambia for a period of five years, after which the preference shares will be acquired by Access Bank Plc.’’

The statement also notes that the enlarged bank will be well placed to participate in the long-term economic growth of Zambia and will be predicated on the country’s vast reserves of natural resources and fast growing young population.

18 COMMENTS

  1. Same is coming in insurance sector . Most of the insurance companies are insolvent and owe ZRA billions of Kwacha. Either international companies will buy most of these companies, or mergers will take place.
    Watch this space. Whole financial sector is in mess. Madison group companies owe Atlas Mara over K300 million. It owes ZRA withholding tax on commission to brokers of an amount 8n excess ofvK50,000,000. It owes ZRA over K240,000,000 on account of transfer pricing transactions. Mergers and acquisition is the only answer.

  2. I hope those Nigerian bosses now treat the employee’s better. 2 of my friends left Access Bank last year due to unfair treatment in the workplace. Apparently the Zambians in Management positions were also toothless. Hopefully things get better now, also we need more stern and professional Zambians in Senior Management within Access Bank. Those who will encourage hard work, fair treatment and equal opportunity for all in the institution.

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  3. Diaspora lady for you I will do anything. I will look into these issues for your friends. Yours truly kz

  4. Diaspora lady for you I will do anything. I will look into these issues for your friends. Yours truly kaizar z

  5. Nigerian corruption in our financial system. No wonder they are targeting our mineral resources…seems that’s the bargaining chip govt is using. Everything in private banking financial/insurance services in Zambian is a Ponzi scheme. People are taking out mortgages and loans from these false banks. Nigerians are very corrupt and I hope our immigration services do not close their eyes to false applications from that country.

    We are ruining our own advancement by depending on other countries. Our culture and nature is being ruined by importing other cultures. I see a lot of Zambians wearing Nigerian clothes. What’s wrong with your own things ?

  6. Nigerians leading the way. Unlike us, they don’t believe the con that such organisations can only be run by westerners. They have Dangote, Glo, UBA etc and yet we believe we can’t even run our mines! How behind we be….

  7. @Patriot Abroad, quit being such a PRIMITIVE XENOPHOBE! If Zambians managed the bank properly, it wouldn’t need Nigerians buyers. SMH

Comments are closed.

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