Access bank completes acquisition of Cavmont
Access Bank Zambia has today announced that they has completed the acquisition of Cavmont Bank after the initial announcement that the deal was made last year 2020.
Access Bank Zambia Head of Corporate Communications Shelly Akyeh told the Zambian Business Times – ZBT in an emailed note that the Nigerian Bank has completed the transaction following conclusion of the key conditions precedent including regulatory approvals.
Like most acquisitions, the combination of the two banks in terms of management and operations is to be done swiftly.
Akyeh stated that the subsequent merger of Cavmont into Access Bank Zambia is expected to take place before the end of January 2021. following which Access Bank Zambia will emerge an even stronger capitalized banking operation with improved scale and capacity to provide best-in-class financial services in the Zambian market.
Access Bank restated its intentions to grow its presence in Zambia which remains a strategic priority. Access Bank looks forward to realizing the synergies from the transaction and achieving further growth to the benefit of all stakeholders.
A further check by ZBT revealed that Access Bank group plc in a statement to the Nigerian Stock Exchange, signed by Company Secretary, Sunday Ekwochi, confirmed that the bank will proceed with the merger of Cavmont into Access Bank Zambia is expected to take place before the end of January 2021.
The board of Access Bank Plc in Nigeria stated that its subsidiary, Access Bank ( Zambia) Limited has completed the acquisition of Cavmont Bank Limited following fulfillment of key conditions precedent, including regulatory approval.
Cavmont experienced a slew of bad debts and management challenges which made the bank struggle to operate profitably. Efforts to dispose of the held collateral could not yield the much needed fall back.
Insiders at Cavmont blamed the banks financial woes which have eventually led to the bank being acquired on failure to follow good credit practices as well as management failure to manage the bank prudently.