Capricorn Group advised 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, regarding a proposed merger of Access Bank (Zambia) Limited (“Access Bank Zambia”) and Cavmont Bank Limited (“Cavmont Bank”). Capricorn Group owns 98.03% of CCHZ, which 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 the key country 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.”