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Diamond Bank sells UK subsidiary amid concerns

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Diamond Bank sells UK subsidiary amid concerns

Diamond Bank Plc has signed a Share Sale and Purchase Agreement with a member of GFG Alliance, for the disposal of the entire shareholding in Diamond Bank (United Kingdom) Plc.

The UK divestment comes on the heels of the bank’s divestment from its West African business, Diamond Bank S.A., which was completed in November 2017. Diamond Bank SA’s operations covered Benin, Togo, Cote d’Ivoire and Senegal.

Diamond Bank will have no remaining international subsidiaries after the divestment from Diamond Bank UK, leaving it solely with Nigeria.

In a regulatory filing at the Nigerian Stock Exchange (NSE) on Thursday, Diamond Bank stated that “The Bank and GFG Alliance are committed to, and are pursuing a quick completion of the transaction subject to approval of the Financial Conduct Authority and Prudential Regulation Authority who regulate banking business in the United Kingdom,” Diamond Bank stated.

Read also: FAAC meeting fails to hold again over inaccurate revenue figures by NNPC

Chief Executive Officer, Diamond Bank Plc, Mr. Uzoma Dozie said “The Nigerian market has vast potential due to its strong fundamentals, including millions of people who are either underbanked or unbanked, and changing lifestyles that favour the use of mobile devices to complete multiple financial transactions at the consumer’s convenience. This is also underpinned by significant economic potential driven by an entrepreneurial spirit, and a growing culture of innovation”.

Market analysts however are concerned that the selldown may be part of a strategy by the bank to bolster its capital base in Nigeria, where it has struggled with the low tier of the commercial banking industry.

It is one of the few banks that are yet to submit their 2017 audited report and accounts at the Nigerian Stock Exchange (NSE) as required by law.

 

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