News Column

Kunoch Holdings Buys Diamond Bank Stake From Actis, CDC

August 22, 2014

Obinna Chima

Diamond Bank Plc has announced that Kunoch Holdings has successfully completed the purchase of Actis DB Holdings Limited, a company which holds Diamond Bank shares, from Actis LLP and CDC Group Plc.

Actis DB Holdings Limited currently holds 14.79 per cent of the issued share capital of Diamond Bank. The funds managed by Actis, a private equity investor specialising in investments in emerging markets, acquired a significant equity stake in the Bank in 2007.

A statement from the bank explained that the funds are now coming to the end of their closed-end period and, accordingly, Actis is realising its investment in the bank.

It noted that over the years, positive contributions by Actis, other institutional investors and the new management team of the bank have created additional value for all shareholders of the bank.

The Head of Private Equity, Actis, Peter Schmid was quoted to have said: "We have worked with Diamond Bank to build a strong franchise over the last seven years. During the period of our investment, Diamond Bank underwent substantial change and is now recognised by the Central Bank of Nigeria as one of the systemically important banks in the industry. "The bank has a strong and capable management team to take it to the next stage of its development and Actis wishes Alex and his team well in this next phase." Also, the Group Managing Director/Chief Executive Officer, Diamond Bank, Dr. Alex Otti expresses satisfaction to have worked with Actis over the last seven years, adding that "we are excited about the next stage of the bank's development."

According to the Otti, Diamond Bank is one of the leading retail banks in Nigeria, with exciting growth prospects in the retail segment of the Nigerian economy as well as a strong position in the micro, small and medium scale enterprises and corporate segments of the economy.

"Diamond Bank has been described as one of the fastest growing banks over the past three years in the tier-2 category and potentially the next bank that would move to the tier-I category. "The bank is currently undertaking a rights issue to raise an additional N50.3 billion which is expected to position the bank to further enable it to execute its strategy going forward," the statement added.

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Source: AllAfrica

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