Diamond Bank denies it’s in talks with Access Bank over ppssible acquisition

Nigerian lendet Diamond Bank on Monday denied media reports that it is in talks with Access Bank, a tier 1 bank over a possible acquisition of the tier 2 bank.

It called the reports “rumours” in a statement signed by company secretary and legal adviser, Uzoma Uja, and made available to business a.m. by the bank’s media relations officer, Ezechinyere Anyanwu.

“The attention of Diamond Bank Plc has been drawn to the rumor in the media stating that the bank is purportedly in discussions with Access Bank Plc to acquire the bank.

“We wish to state categorically that the bank is not in discussions with any financial institution at the moment on any form of merger or acquisition.

“We trust that the above clarifies the position of the bank with regards to the rumor on the various media platforms,” the bank said..

Questions around Diamond Bank’s recapitalisation process have continued to rise especially in the wake of the sudden retirement of four of its directors including board chairman, Oluseyi Bickerseth.

The bank last Friday in a separate statement, however insisted that no investor had come forward to inject cash into the company and that it’s board was reviewing all strategic options.

An economic analyst who shared his view on the growing capital inadequacy of the bank is of the opinion that the bank could adopt a strategy Wema Bank employed by obtaining a license that suits its current capital adequacy.

“Wema Bank managed it’s liquidity issue better. It changed operating license twice, which requires lower operating CAR. From national bank down to regional bank and later upgraded to national bank, after the bank was able to raise funds from new investors that later led to ALAT,” the analyst said.

The Central Bank of Nigeria had earlier in the month cast aspersions to the positions of four financial institutions in the country.

Diamond Bank upon growing indications that it is one of the four is sending panic selling among investors and causing it’s share price to fall.

The stock was down 9.38 percent at close of Monday morning trading session.