Diamond Bank Plc said it had concluded plans to sell its West African banking operations in order to focus on Nigeria’s significant retail banking opportunity.
According to a statement, the bank has agreed to sell its operations in Benin, Togo, Cote D’Ivoire and Senegal to Manzi Finances S.A., a Cote D’Ivoire-based financial services holding company in a deal valued at €61 million.
It further revealed that regulatory approvals had been obtained in all jurisdictions for the transaction, which it anticipated would close before December 31, 2017.
“By focusing its resources exclusively on Nigeria, Diamond Bank is poised to capitalize on the positive macro fundamentals inherent in the Nigerian market. These include Africa’s largest economy and evolving socio-economic trends driven by changing lifestyle preferences in favour of mobile delivered services, and a culture of innovation and entrepreneurship,” the statement added.
Commenting on the transaction, Diamond Bank’s CEO Uzoma Dozie said: “After 18 years of building the Diamond Bank franchise in other markets in West Africa, the time has come to fully apply our resources to Nigeria.” This, Dozie said aligns with Diamond Bank’s strategic objective: to be the fastest growing and most profitable technology-driven retail banking franchise in Nigeria.
He added: “We are prioritizing the Nigerian market because of its vast potential. A large segment of the population is under-banked or unbanked and the use of technology and mobile banking is rising exponentially.
“This provides Diamond Bank with the opportunity to reach millions of people, and facilitate financial inclusion on an exceptional scale.
“In addition, Diamond Bank already has a foundation for growth in Nigeria with over 15 million customers. We also have a framework in Nigeria that will allow us to scale rapidly, efficiently and cost effectively.
As of the last trade (November 6, 2017) Diamond Bank PLC (DIAMONDBNK:LAG) traded at 1.16, -23.18% below its 52-week high of 1.51, set on Jun 12, 2017. On a 1 year basis the counter is up by 3.57%.
Some of the Institutional Shareholders in Diamond Bank are:
- Skagen AS
- Global X Management Co. LLC
- Duet Asset Management Ltd.
- HSBC Global Asset Management (UK) Ltd.
- Tundra Fonder AB
About Diamond Bank Plc
Diamond Bank Plc began as a private limited liability company on March 21, 1991 (the company was incorporated on December 20, 1990). Ten years later, in February 2001, it became a universal bank. In January 2005, following a highly successful Private Placement share offer which substantially raised the Bank’s equity base, Diamond Bank became a public limited company. In May 2005, the Bank was listed on The Nigerian Stock Exchange. Today, Diamond Bank is the fastest growing retail bank in Nigeria with a track record of high-quality banking solutions for customers. It’s the lead driver of financial inclusion and enhanced customer experience through innovation and technology. Regarded as a supporter of lifestyle trends, its mobile banking app, “Diamond Mobile” currently has over 2.5 million active subscribers on its platform. Diamond Bank has over the years leveraged on its underlying resilience to grow its asset base and to successfully retain its key business relationships. It has also played a leading role in partnering with domestic and International bodies such as Women’s World Banking, Bill and Melinda Gates Foundation, MTN etc. to create easy access to financial services for the unbanked.
Source: ThisDayLive, Diamond Bank, FT