Diamond Bank debunks tales of new key investors
TIER2 LENDER, DIA MOND BANK Plc. has denied media reports of a planned capital injection by new investors. In a notice to the investing public and the Nigerian Stock Exchange (NSE) Friday, the bank stated that such reports were an absolute falsehood.
“Our attention has been drawn to recent media reports concerning new equity investment in Diamond Bank Plc. Such reports have speculated on the identity of a new investor, with permutations on the structure of the investment.
“We wish to notify the Nigerian Stock Exchange (NSE) and the gen-
eral public that these reports are far from the truth. Diamond Bank is not in talks with any party, global or otherwise, for any capital injection,” the note read.
The speculations came on the heels of the immediate resignation of the chairman of the board of directors, which suggested that the mid-tier bank was looking to inject additional capital through new investors.
However, the bank said that it recognizes the need to expand its options in the short term, but the preferred option to shore up its capital adequacy ratio (CAR) will be an internal capital management programme.
Indeed, shares of the bank rose to a four-month high last Thursday, in response to the recapitalisation rumours. The bank’s shares rose for the fourth straight session, up 20 percent week-on-week to settle at N1.44 from N1.20 per share last Monday.
We wish to notify the Nigerian Stock Exchange (NSE) and the general public that these reports are far from the truth