Diamond Bank Plc (“the Bank”) has signed a Share Sale
and Purchase Agreement with a member of GFG Alliance, for the disposal of its
entire shareholding in its international subsidiary, Diamond Bank (UK) Plc
(“DBUK”).
The disposal is in line with the Bank’s objective of
streamlining its operations to focus resources on the significant opportunities
in the Nigerian retail banking market. The transaction follows the bank’s
divestment from its West African business, Diamond Bank S.A., which was
completed in November 2017.
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.
Commenting on the transaction, Diamond Bank's CEO Uzoma
Dozie said:
“Diamond Bank’s strategic objective is to be the
fastest growing, and most profitable technology-driven retail banking franchise
in Nigeria. This strategic intent requires the Bank to optimize the use of its
resources which means, where necessary, divesting from its non-core assets, and
focusing on the priority area, namely Nigerian retail banking. In recent years,
the Bank has laid the foundation for growth in Nigeria with acquisition of over
15 million customers, many of whom are owning bank accounts for the first time.
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.
Moreover, by harnessing technology and fostering a
digitally led approach, the Bank will have further positive impact on the
overall development of the financial system, and the Nigerian economy in
general.”
The sale of the international subsidiaries is not
expected to cause service disruptions for the Bank’s customers located around
the world as they can continue to enjoy enhanced and convenient banking
services through the Bank’s digital channels.