Last week Thursday, Capricorn Group has informed its shareholders through a voluntary announcement on the Namibian Stock Exchange that its Zambian subsidiary, Cavmont Capital Holdings Zambia PLC (CCHZ), has signed a Share Purchase Agreement with Access Bank (Zambia) Limited, a subsidiary of Access Bank Plc. The agreement is for the proposed merger of Access Bank (Zambia) Limited and Cavmont Bank Limited. Capricorn Group owns 98.3% of CCHZ, which in turn owns 100% of the share capital of Cavmont Bank.
Under the terms of the Share Purchase Agreement, Access Bank Zambia will acquire the entire issued ordinary share capital, assets and liabilities of Cavmont Bank. The transaction is expected to be completed during quarter four of 2020 and is subject to regulatory approvals from Zambian regulators, local and regional competition authorities and approval from the CCHZ shareholders. On completion, Cavmont Bank will become part of Access Bank Zambia and operate under the Access Bank brand.
Thinus Prinsloo, Group CEO of Capricorn Group, said: "Access Bank Plc is an African banking group with an impressive growth trajectory and geographic reach across Africa and internationally. It is an excellent strategic fit with Cavmont Bank's presence in Zambia and will strengthen the capital base from which to achieve long-term sustainable growth.
Zambia is an African economy with significant economic potential that is poised for a robust recovery, and this combination best positions the combined bank to capture these opportunities."