Merger: NSE places Diamond Bank shares on full suspension

Trading in the shares of Diamond Bank Plc has been placed on full suspension following the court sanction of the Scheme of Merger with Access Bank Plc.

The Nigeria Stock Exchange (NSE) in a notification to its dealing members posted on its website on Wednesday said the full suspension takes effect from March 20.

“Dealing members are hereby notified that following the court sanction of the Scheme of Merger between Access Bank Plc and Diamond Bank Plc, trading in the shares of Diamond Bank has been placed on full suspension,” it stated.

The exchange said the suspension was required to prevent trading in the shares of the bank in order to determine shareholders who would qualify to receive the scheme consideration.

It noted that Diamond Bank obtained the court sanction of the scheme on March 19, being its effective date.

The NSE stated that the bank’s shareholders passed a resolution approving the merger between Diamond Bank and Access Bank Plc at the court ordered meeting of the bank held on March 5.

The exchange will delist Diamond Bank from the daily official list at the exchange after the merger.

The shareholders of Diamond Bank and Access Bank, at an Extraordinary General Meetings (EGMs) of both banks, gave approval for the merger.

Mr Herbert Wigwe, Access Bank Chief Executive Officer, told shareholders at the EGM that the merger enabled Access Bank to acquire a bank with 17 million retail customers and the most viable mobile payment platform.

Wigwe said the expected revenue and cost synergies were material and promised significant long term value. (NAN)