Access Bank (Zambia) Limited signed a definitive agreement to acquire Cavmont Bank Limited from Cavmont Capital Holdings Zambia Plc (LUSE:CCHZ) for ZMW 1 on July 1, 2020. Under the terms, Access Bank (Zambia) will acquire 100% of Cavmont Bank Limited. Capricorn, parent of Cavmont Capital Holdings Zambia will invest atleast ZMW 300 million in preference shares of the combined entity and will hold it for 5 years. After 5 years Access Bank Plc, parent of Access Bank (Zambia) will acquire the preference shares. Following the legal merger of the two banks, the enlarged entity will be a majority owned subsidiary of Access Bank Plc. It is Access Bank Zambia’s intention to retain one or more of Cavmont Bank’s existing directors on the board of the merged entity following the completion of the transaction. The transaction is subject to the meeting of various conditions precedent which, amongst others, include CCHZ and Access Bank shareholder approval, relevant regulatory approvals and the local and regional competition commission authorities and is expected to close in October 2020. The transaction is capital-accretive. Mutale Kasonde and Eustace Ngoma DLA Piper Africa acted as legal advisors to Cavmont Bank Limited Access Bank (Zambia) Limited completed the acquisition of Cavmont Bank Limited from Cavmont Capital Holdings Zambia Plc (LUSE:CCHZ) on January 6, 2021.