Access Bank Expands Foreign Acquisition To Zambia |The Source

By Tosin Olatokunbo

Access Bank Plc has added to its number of offshore subsidiaries following its acquisition of Cavmont Bank Ltd in Zambia.

Subject to approval by regulatory and stakeholders’ approvals the acquisition is expected to position Access Bank Zambia as a top 10 bank in the country.

A statement from the tier one lender, signed by the Company Secretary, Sunday Ekwochi  said the deal was reached after a ‘definitive agreement’ with Cavmont Capital Holdings Zambia Plc, CCHZ.

The Herbert Wigwe-led bank stated that the deal will combine Access Bank Zambia’s wholesale and trade finance capabilities with Cavmont Bank’s retail and commercial banking operations.

Access Bank said in the statement, ‘’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.’’

The details of the acquisition, the bank stated is that “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 Zambian acquisition is the latest foreign expansion after Access Bank completed the takeover of Kenya’s Transnational Bank Plc last month.