Diamond Bank Plc received an offer from a major investor to inject cash by increasing its stake, a move that would help the Nigerian lender keep its capital adequacy ratio above the required threshold, according to the outgoing chairman, Seyi Bickersteth.

Bloomberg report quoted Bickersteth saying that the proposal was on condition that Chief Executive Officer, Uzoma Dozie resigns, without naming the shareholder.

Diamond’s biggest investor is U.S. private equity firm Carlyle Group LP, which declined to comment.

http://meganews.com.ng/2018/11/08/financial-crisis-unnamed-investor-seeks-diamond-bank-mds-exit/

The report further said the bank’s spokesman, Ezechinyere Anyanwu, declined to comment on whether there has been a recapitalisation offer.

Diamond is one of a number of smaller Nigerian lenders struggling to maintain a regulatory requirement for banks with international operations to have reserves of capital that cover at least 15 per cent of outstanding loans. The company’s ratio stood at 16.3 percent at the

end of September, the lender has said.

Capital requirements became a concern for many Nigerian banks in 2016 after a contraction in the economy caused by an oil-price slump triggered a surge in non-performing loans. Standard & Poor’s on Tuesday cut Diamond Bank’s rating to CCC+/C from B-/B, citing pressure on capital and foreign-currency liquidity.

Diamond has also discussed selling itself to a larger rival, but this plan was eventually rejected after a boardroom vote, Bickersteth said, declining to identify the potential acquirer.

“The majority of us voted against” the takeover, he said. “The bank cannot be pushed into the hands of one suitor,” if it intends to get the best value for shareholders.

Diamond Bank’s Anyanwu confirmed that a board meeting took place last month but declined to give details of what was discussed.

To add to the confusion surrounding the lender, Bickersteth is challenging an announcement by the bank that he’s no longer chairman. He initially quit alongside three other non-executive directors in a walkout last month, only to rescind his resignation and vote on the proposed takeover proposal. Nevertheless, Diamond announced his departure on October 25.

The lender has announced plans to dispose of its U.K. subsidiary, which would follow the sale of four divisions elsewhere in West Africa.