DEC 17, 2018: HOLDERS OF 70.984m DIAMOND BANK OUT OF NEW DEAL

At the Nigerian Stock Exchange yesterday Monday December 17, 2018 some shareholders of Diamond Bank , willingly or in ignorance, opted out of the new take over deal struck with Access Bank plc.

Under the new deal announced the same day, Access Bank is to take over Diamond bank by paying the banks' shares N1 per share outright plus 2 new Access bank shares for every 7 of Diamond Bank.

The deal was still subject to the approval of the Central Bank of Nigeria and shareholders but the CEOs of both banks were already sold on it.

However, at the Nigerian stock market, shareholders controlling 70.984m shares of Diamond Bank traded their holding in 129 deals worth N72.643m as the price rose 9.47% or N0.09 per share  to N1 per share.

Thus getting cash immediately for their holdings and opting out of the additional shares in Access Bank that is part of the package.

It is possible the order to sell had become irreversible before the announcement because after all, last week a total of 97.787m Diamond Bank shares were offloaded in 833 deals.

Access Bank, too recording some technical opt out as well with 13.615m of its shares sold in 254 deals worth N108.550m yesterday. For Access, the price gain was 9.40%.

At the market itself, the new week started downwards with the All share index easing 0.27% to 30,609.06 and compared Friday close, most trade indicators closed down as well.

There were 2975 deals for 214.961m shares worth N1.732bn as against 2337 deals for 349m shares worth N2.306bn on Friday.

The top volume was Diamond Bank offload but leading traded value and number of deals were GTB's 306 deals for 10.605m shares valued at N363.422m while shedding N0.95 per share, third highest of the day's decline by Naira per share.

Cement Company of Northern Nigeria was the lone equity with above N1 per share gain ending up N1.45 or 9.24% per share to record 42 deals for 0.833m shares worth N14.296m

In contrast, Forte Oil and CAP plc closed down N2.4 per share each to be the duo with above N1 per share decline.

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