The management of Diamond Bank Plc on Monday have once again denied the bank\u2019s acquisition by a sister financial institution Access Bank Plc.<\/p>\n
According a statement from the bank sent to nationawire and singed by its Media Relations Officer, Ezechinyere\u00a0Anyanwu, he said the rumor in the media stating that the Bank is purportedly in discussions with Access Bank Plc to acquire the Bank is not true.<\/p>\n
The media was only last week a washed with information that the bank was in talks with a foreign investor. This the bank debunked.<\/p>\n
The statement further reads that: \u201cWe wish to state categorically that the Bank is not in discussions with any financial institution at the moment on any form of merger or acquisition. We trust that the above clarifies the position of the Bank with regards to the rumor on the various media platforms\u201d it added.<\/p>\n
Reports in some of the media on Monday had it that talks on the acquisition was on, quoting sources\u00a0who\u00a0said the fusion is set for\u00a0the first quarter of next year.<\/p>\n
The report quoting the sources further said it also gathered that both financial institutions have reached an agreement in broad terms on the acquisition, saying what is left is the valuation of assets, with a view to determining the level of compensation\u00a0and systems\u2019 integration even as it pleaded not to be named because they are not allowed to talk to the media on the matter.<\/p>\n
\u201cIt was learnt that the development leading to the impending acquisition was triggered by Diamond Bank directors who approached Access Bank\u00a0for intervention in a bid to stave off\u00a0a possible regulatory intervention that could lead to the withdrawal of the lender\u2019s operating licence in the light of the bank\u2019s depleting capital adequacy ratio\u00a0on account of a huge\u00a0Non-Performing Loans (NPLs) portfolio put at over N150billion.<\/p>\n
According to the Nation newspaper, <\/em>it said\u00a0it gathered that Access Bank directors examined the proposal and,\u00a0after series of meetings and evaluations, accepted to acquire the entity. However, the agreement so far reached, it was understood, will not alter the name of Access Bank nor its management structure.<\/p>\n \u201cIt\u2019s a complete acquisition and not a merger,\u201d a source, who asked not to be identified, but who is familiar with the transaction, said, adding that one of the major considerations that swayed Access Bank\u2019s directors in accepting the offer was the large branch network of the lender. \u201cIt\u2019s burgeoning NPLs,\u00a0however,\u00a0was of serious concern to Access Bank and almost becoming a disincentive, but\u00a0it has been addressed,\u201d the source added.<\/p>
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