Cavmont Capital enters M&A discussions with Access Zambia
Banking, Cavmont

Cavmont Capital Holdings Zambia has announced that it is in discussions with Access Zambia for a possible takeover of the bank, according to a statement from the bank.

Shareholders are advised that Cavmont Capital Holdings Zambia PLC (“CCHZ”) hereby announces that it has entered into exclusive discussions with Access Bank Zambia Ltd. (“Access Zambia”) regarding a potential transaction between Access Zambia and Cavmont Bank Ltd., a wholly-owned subsidiary of CCHZ”, read a statement issued Rita Mapara- Ndhlovu, the Company Secretary, of the Bank on 8 July 2020 in Lusaka.

According to the published statement, “the potential transaction relates to the sale of 100% of CCHZ’s interest in Cavmont Bank Ltd to Access Zambia”. This means that Access Zambia would be negotiating a voluntary offer for all the shares in the Bank. A voluntary takeover offer may be made by any person to the shareholders of the company.

The issued statement further cautions that it is still early stages in the discussions hence the deal is not yet concluded. “There can be no certainty that a transaction will be agreed, nor as to the terms of any such agreement”. In order to ensure information symmetry in the market, “CCHZ will update the market as appropriate and in accordance with its legal obligations and the Lusaka Securities Exchange Listings Requirements”.

The Securities and Exchange will be overseeing how this potential acquisition progresses. In accordance with Securities Act of 2016, they have the power to investigate mergers or take-overs. Furthermore, they provide the rules on mergers and takeovers concerning all listed companies or companies whose securities are registered by the Commission.

At half year 2020, the bank recorded better top half performance for the last six months of the financial year compared to the previous one. “Cavmont Capital Holdings Zambia Plc (“the Company”), with Cavmont Bank Limited (“the Bank”) as its wholly-owned subsidiary together referred to as (”the Group”), reported a set of results which showed improvement compared to the prior six month period before considering exceptional items with the loss before tax and exceptional items reducing from K24 million to K13 million year-on-year”, read a statement issued by Rita Mapara Ndhlovu on behalf of the Board on 26th March 2020 for the first six months of the 2020 financial year.

Should the deal proceed, Access Zambia will be inheriting an asset that has been undergoing turnaround. The bank has been focused on selective growth to improve the overall quality of the statement of financial position, while particular attention has been paid to operational efficiencies and recoveries and rehabilitation of nonperforming loans. Furthermore, they have maintained a commitment to their customers as they transition to profitability.

(Visited 204 times, 1 visits today)

Sharing is caring!

The information contained on this website is for general information purposes only. While we endeavour to keep the information as accurate as possible, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or subject companies or matters contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
 right-arrow   right-arrow