Nigeria's tier-1 bank, Access Bank Plc has confirmed the acquisition of Diamond Bank Plc in a move to create Nigeria and Africa’s largest retail bank by customers in a deal worth more than $90 million.

Bloomberg news put the deal at a figure around $200 million.

The deal, Access Bank, says will involve acquiring the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access Bank via a Scheme of Merger.

In a statement issued on Monday, December 17, 2018, seen by Business Insider by Pulse, Access Bank said based on the agreement reached by the boards of the two financial institutions, Diamond Bank shareholders will receive N3.13 per share, comprising;

  • A cash consolidation of N1.00 (Naira) per Diamond Bank share representing a total cash amount of N23.16 billion ($75. 58 million) and;
  • The allotment of 6.61 billion new Access Bank ordinary shares, representing the 2 new Access Bank ordinary shares for every 7 Diamond Bank shares.

According to the statement, the offer represents a premium of 260% to the closing market price of N0.87 per share of Diamond Bank on the Nigerian Stock Exchange as at December 13, 2018, the date of the final binding offer.

Business Insider's analysis of the figures shows that the buyout comprises of 6.62 billion for a share price of N0.87 each is worth $15.8 million.

In summary, Access Bank pumped out more than $90 million for the final acquisition of Diamond Bank. The move, analysts say, may make Access Bank Nigeria's largest bank by customer size and capital base.

The completion of the transaction would be subject to formal regulatory and shareholder approvals.

Citi Global markets limited and Chapel Hill Denham acted financial advisers to Access bank while Banwo & Ighodalo, acted as legal advisers to Access Bank.