Shock, trepidation and fear have gripped staff of Diamond Bank across the country following announcement of a merger with Access Bank last week. Many of the staff told Nigerian Xpress Business that they have already settled on the fact that they would soon lose their jobs.
Analysts have predicted that about 6,800 of Diamond Bank staff will lose their jobs.
According to a disturbed marketing staff who did not want to be named, “we are certainly going to lose our jobs. We know very well what these banks do when they acquire other banks. How many staff of defunct Intercontinental Bank are still working with Access today?
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Another staff, Jane, said she knew she was already in the job market the moment the announcement was made on Monday.
The cat was finally let out of the bag last week when it was announced that Access Bank has concluded plans to acquire 100 per cent shares of Diamond bank at a cost of twenty three billion, one hundred and sixty million, three hundred and eighty eight thousand, nine hundred and sixty-eight Naira (N23,160,388,968.00) only.
The announcement came as a surprise to many, especially shareholders and customers who last month were fed with stringent denials by both Access Bank and Diamond Bank that such a deal was never in the offing.
In the statement announcing the acquisition, Access Bank board said “it has signed a Memorandum of Agreement (MoA) with Diamond Bank Plc (“Diamond”) regarding a potential merger of the two banks that will create Nigeria and Africa’s largest retail bank by customers. This follows its selection as preferred bidder after a competitive process undertaken by the Board of Diamond Bank.”
The proposed merger, the statement said, would involve Access Bank 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.
And 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 consideration of N1.00 (one Naira) per Diamond Bank Share representing a total cash amount of N23,160,388,968 (twenty-three billion, one hundred and sixty million, three hundred and eighty-eight thousand, nine hundred and sixty-eight Naira), or US$ 75,588,736.84 (seventy five million, five hundred and eighty eight thousand, seven hundred and thirty six dollars and eighty four cents) and; allotment of 6,617,253,991 (six billion, six hundred and seventeen million two hundred and fifty-three thousand, nine hundred and ninety-one) new Access Bank ordinary shares, representing the 2 new Access Bank ordinary shares for every 7 Diamond Bank shares.