Access Bank’s Zambian arm will acquire Cavmont Capital, a subsidiary of Capricorn, a Namibia-based financial services company at a minimal amount, the media said.
Joana Bannerman, Access Bank Zambia managing director, told the media, “This merger, which will see the combined bank becoming a top 10 bank in Zambia, will increase our scale and improve our operating leverage by enabling us to deliver our existing retail and wholesale offerings to a wider base of customers.”
It is reported that 98.03 percent of Cavmont Capital belongs to Capricorn. After the acquisition, Cavmont Capital will be completely operated by Access Bank Zambia. The share capital, assets and liabilities of Cavmont Capital will be taken over by the bank. As a part of the agreement, Capricorn will inject $300 million as a re-investment. Last year, Cavmont Bank recorded tax loss of $1.14 million.
In July, Access Bank unveiled plans to merge Cavmont Bank’s retail and commercial banking operations with Access Bank Zambia’s wholesale and trade finance capabilities. The transaction is yet to be completed.
Amid the Covid-19 pandemic, Access Bank is seeks to establish its presence across the globe including Africa. The new acquisition comes after the bank established its subsidiary in Cameroon and completed the transaction on the final acquisition of Kenya’s Transnational Bank.
According to Capricorn, the strategic merger with Access Bank will pave the way for Cavmont Capital’s presence in Zambia and will strengthen the capital base to achieve long-term sustainable growth.