Yesterday a banking source of Business Insider published the article about the intentions of Access Bank to acquire Diamond Bank. As long as Diamond Bank Plc is currently trying to cope with huge debts and escape regulatory intervention, it is the only way out. Do you want to learn more and find out if this news is true? Keep reading our post and you definitely will.
The talks about a difficult financial situation in Diamond Bank of Nigeria disturb the users of the bank. Three bank’s directors had to resign from their post, and the authorities of the bank explained it with the appearance of personal reasons (what sounds not very credible). Diamond Bank is one of many smaller Nigerian lenders struggling to maintain a regulatory requirement for banks with international operations to have reserves of capital that cover at least 15 percent of outstanding loans.
The company’s ratio stood at 16.3 percent at the end of September. Besides, sources say the bank holds negotiations with new investors to recapitalize and settle 2019 bond maturity and moreover the Diamond Bank CEO – Uzoma Dozie, is allegedly expected to quit his position in 2019.
In the article by the local newspaper, The Nation, said yesterday that both financial institutions in Nigeria (Diamond Bank and Access Bank) are not going to merge. It was assumed that Access Bank of Nigeria would obtain the right to merge with Diamond Bank and as it was reported in Business Insider, the deal was expected to be completed in the first quarter of 2019. Both banks in Nigeria have reached an agreement concerning the foregone acquisition.
The talks that the acquisition deal began when the authorities from Diamond Bank started to look for the way out of a difficult situation in their move against possible regulatory intervention. The discussion was said to have been premise on its huge Non Performing Loans (NPLs) portfolio put at over N150billion. After the examining the offer, the authorities of Access Bank accepted the proposition to acquire Diamond Bank.