Diamond Bank Shares Suspended from Trading on NSE

Diamond Bank

Ade Olulana

Shares of Diamond Bank Plc have been suspended from being traded on the floor of the Nigerian Stock Exchange (NSE).

This was revealed on Wednesday, March 20, by the NSE in a statement signed by Lilian Dako, on behalf of the head, listings regulation department.

According to the statement, the suspension is required to prevent trading in the shares of the Bank in order to determine the Bank’s shareholders who will qualify to receive the considerations from a scheme of merger.

Diamond Bank’s shareholders had on Wednesday, 6 March 2019, passed a resolution approving a merger with Access Bank Plc at a Court Ordered Meeting (COM) of the Bank.

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Access Bank is offering Diamond Bank shareholders N3.13 per share, comprising of N1.00 per share in cash and the allotment of 2 new Access Bank ordinary shares for every 7 Diamond Bank ordinary shares held as at the implementation date.

The offer represents a premium of 260 percent to the closing market price of 87 kobo per share of Diamond Bank on the NSE as of December 13, 2018, the date of the final binding offer.

The statement from the NSE, noted that Diamond Bank obtained the Court Sanction of the Scheme on Tuesday, 19 March 2019, being the effective date of the Scheme, hence the suspension which is effective March 20, 2019.

The suspension of trading in the shares of Diamond Bank Plc in preparation for its merger with Access Bank Plc will eventually lead to a delisting of Diamond Bank’s shares from the daily official list of the exchange, the NSE further revealed

It will be recalled that Access Bank, which is acquiring Diamond Bank in form of a merger deal, officially announced earlier in the week to the investing community that it had received a court sanction to absolve the tier-two financial institution into Access Bank, a tier-one bank.

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