₦airaland Forum

Good health has become a great concern in virtually every part of Africa but some cases are alarming and need great attention. One of such is the recent outbreak of the Ebola virus in the Democratic Republic of Congo which is the worst the country has recorded, the health ministry says.
A vaccination programme has so far inoculated about 25,000 people. Over 200 people have died since August, officials say, with more than 300 confirmed or probable cases. DR Congo has suffered long years of instability and efforts to relieve the disease have been hampered by attacks on medical workers.
“At this point, 319 cases and 198 deaths have been registered,” health minister Oly Ilunga said.

“In view of these figures, my thoughts and my prayers go to the hundreds of families grieving, to the hundreds of orphans and the families which have been wiped out.” The outbreak in 1976 of what was then an unknown disease in a remote part of DR Congo sparked terror, but was brought under control by experts quickly identifying the virus’ nature and using quarantines.

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About half the victims were from Beni, a city of 800,000 in the North Kivu region, the national health authority said. The current outbreak is the tenth DR Congo has suffered and the worst since the country’s first epidemic in 1976, so early in the disease’s history it had yet to be named.

Take note that Ebola is spread via small amounts of bodily fluid and infection often proves fatal and its early symptoms are flu-like, followed by vomiting, diarrhoea, a rash and internal and external bleeding.

Access Bank is set to add Diamond Bank’s portfolio to its assets in the next few months. Talks on the acquisition are on according to a source who said the fusion is set for the first quarter of next year.

It was gathered that both financial institutions have reached an agreement in broad terms on the acquisition. What is left is the valuation of assets, with a view to determining the level of compensation and systems’ integration, the sources said, pleading not to be named because they are not allowed to talk to the media on the matter.

It was learnt that the development leading to the impending acquisition was triggered by Diamond Bank directors who approached Access Bank for intervention in a bid to stave off a possible regulatory intervention that could lead to the withdrawal of the lender’s operating licence in the light of the bank’s depleting capital adequacy ratio on account of a huge Non Performing Loans (NPLs) portfolio put at over N150billion.

We gather that Access Bank directors examined the proposal and, after series of meetings and evaluations, accepted to acquire the entity. However, the agreement so far reached, it was understood, will not alter the name of Access Bank nor its management structure.

“It’s a complete acquisition and not a merger,” a source, who asked not to be identified, but who is familiar with the transaction, said, adding that one of the major considerations that swayed Access Bank’s directors in accepting the offer was the large branch network of the lender. “ It’s burgeoning NPLs, however, was of serious concern to Access Bank and almost becoming a disincentive, but it has been addressed,” the source added.

It was also gathered that the CBN is well acquainted with the development. The regulator’s acquiescence to the deal was informed by the recent event that led to the liquidation of Skye Bank, and the apex bank not being disposed to following that route because of the huge cost implication that a bailout of Diamond Bank might require, encouraged the discussions, “and the regulator is pleased with the level of discussions so far.”

“ The CBN encouraged the ongoing arrangement, given the fate that befell the defunct Skye Bank a few months ago. The apex bank gave its consent and approval for the actualisation of the marriage. ”

We learnt that the regulator’s unalloyed support for the emerging entity followed its unpreparedness to commit any further huge funds for the rescue of any wavering bank.

Bloomberg reported that a major investor was in the process of injecting funds into Diamond Bank on condition that the CEO, Uzoma Dozie, exits his position. The report attributed to the Chairman, Seyi Bickersteth, has since been denied by the bank.

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 percent of outstanding loans. The company’s ratio stood at 16.3 percent at the end of September, the lender has said.

The bank cut its full-year profit forecast by more than half on Tuesday after income from operations declined. It now expects profit before tax to reach 3.8 billion naira ($10.4 million), down from a previous target of 8 billion naira.

The shares rose 2.5 percent on Wednesday, trading at 1.21 naira at the close in Lagos. The stock is down 19 percent this year, compared with a 12 percent fall on the NSE Banking 10 Index.

Diamond Banks response to the situation

Diamond Bank, in a statement, said contrary to media articles, “the Board wish to clarify that the company has not received an offer from an investor to inject cash. Further to the Company’s announcement of 26 October 2018, Diamond Bank and its Board of Directors continue to review all strategic options on a regular basis. Diamond Bank would also like to clarify it enjoys the support of its major shareholders, including The Carlyle Group and Kunoch Holdings who are, as ever, working in cooperation with the Board and management as appropriate to ensure the successful operation of its business in Africa’s most dynamic banking market.

“Further to the announcement of 24 October 2018, Diamond Bank is in active discussions with regards to the appointment of new non-executive directors to the Board and, subject to CBN approval, these will be announced in due course.” “Diamond Bank’s recent Third Quarter results published on October 26, 2018 show the business continues to execute its clearly articulated tech-led retail strategy despite headwinds in the Nigerian economy,” the bank stated.

There are a lot of things going on in the country to the disadvantage of the common man in Nigeria and the last thing we need at the moment is the information that another Bank has been liquidated, as this will not serve the interest of the Nigerian people in any way. HolyGist


READ MORE ON: https://www.holygist.com/is-diamond-bank-in-distress-as-access-bank-set-to-take-over/