Nigeria’s Diamond Bank Plc, a mid-sized lender said it has sold off its 100% shareholding in Diamond Bank UK, a subsidiary of the bank in the country.
Diamond Bank disclosed in a statement that it has sold the unit to GFG Alliance.
In a statement issued by the company, the bank said:
Diamond Bank Plc 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. T
He added that “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 banj assured the markets that the “sale of the international subsidiaries is not expected to cause service disruptions for the Bank’s customers.”