Coolcash1:
sorry house, what is the share exchange ratio for the Diamond-Access bank merger?

fxuser:
Wema
- trading above prev weekly close
- nice ff thru ...

samzepaparazi:
the diamond access deal was a 260% promise from 87kobo.

you will be even at N2.26.

if access bank rallies further, you have an even better deal.

so why sell your diamond

fxuser:
Wema - trading above prev weekly close - nice ff thru ...

edwardaigb:
Eku diamond bailout.

samzepaparazi:
the diamond access deal was a 260% promise from 87kobo.

you will be even at N2.26.

if access bank rallies further, you have an even better deal.

so why sell your diamond

Michael11stock:
Diamond money moving to transcorp let the game begin this is fun

Jonathan:
Chai , that person that entered FO at 37 naira the other day. Chaiiii
There is God

onegentleguy:
Given the proposed merger between ACCESS and DIAMOND, it makes some sense to run an in-depth but cursory review and analysis to find out who amongst the shareholders of the 2 are up for a better deal from it all.
Put differently, where would be best for u to align with on the back of this merger?

"According to the report from both banks, the proposed merger would involve Access Bank acquiring the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access Bank via a Scheme of Merger.
Based on the agreement reached by the boards of the two financial institutions, Diamond Bank shareholders will receive a consideration of N3.13 per share, comprising of N1.00 per share in cash and the allotment of two(2) New Access Bank ordinary shares for every seven(7) Diamond Bank ordinary shares held as at the implementation date."

...a quick math:

On the DIAMOND side of the curve;

Today's closure price- N1.04. ...hence MoS gap from proposed merger price = 3.13-1.04 = N2.09.
Consideration price = N3.13
Cash allotment = N1
Hence allotment figure = Price consideration discounting for cash = 3.13-1 = N2.13.
Allotment ratio fulfilling implementation date- 7:2 (7 diamond for 2 access)
This means that post cash allotment, an investor's N14.91(7×2.13) worth in DIAMOND is EXPECTED to be equivalent to a N16.30(2×8.15) worth of ACCESS (assuming today's closing price of N8.15).
But DIAMOND's current price is N1.04. ...and so with reference to this allotment, an investor's N7.28(7×1.04) in DIAMOND should complement a N16.30(2×8.15) value in ACCESS.
...the interpretation of this is that an Investor/trader who managed to KEY in at the pre implementation date should at the very least be entitled to a stake of 2 units of ACCESS BANK for just N7.28. ...or per equity stake(1 unit) for only N3.64 !!
Which presents the plausibility of an already 114% ROI given ACCESS BANK'S closing price of N8.15 today.
Even if the price of DIAMOND should appreciate to the allotment figure price of N2.13, there would still be an over 9% MoS discount[(16.30-14.91)/14.91] from the current price of ACCESS. ...and we have not even factored in the N1 cash figure.
Add that up, and the chance of any possible return can only increase. (a likely 180-210% ROI).

On the ACCESS side of the curve;

We need to look at things in reverse view.
If a shareholder who keyed into DIAMOND pre implementation date can(given the above computation) get an equity stake of ACCESS BANK with just N3.64, it makes sense to assume in part(given access' current market price of N8.15) that value accretion is less here.
The best case scenerio would be to run an estimate in line with the fair value of ACCESS BANK, and do a repeat computation to see where there would likely be more 'gap' to tap from with regards to value.
At my FV estimate of N15.50 for ACCESS and using a Mix of valuation model to weigh in on the best price post merger (after dilution), ACCESS' best price would come in at slightly higher than today's closing price. (N9.40 to be precise)
Note that 'best price' in this instance refers to what I believe an equity stake of ACCESS should come to as an equivalent to DIAMOND and not necessarily the fair value of ACCESS.

Conclusion:
It makes sense to believe that the chances of reaping higher gains is more with DIAMOND than ACCESS.
...and so UNLESS THERE IS MORE TO THIS MERGER THAN WE ALREADY KNOW, the shareholders of DIAMOND has got themselves a better deal ahead of ACCESS.
So in the short term, I see a much better derivable value in DIAMOND than ACCESS. That said, there's also a high possibility of a great value with the latter in the long term, should this drive be effectively managed.

My advise:
If I were an Investor with positions in both coys, I would look to book my profit from DIAMOND within the N2-2.09 price band and no more than N9.40 in ACCESS. This should also serve to guide ur target entries if u wish to KEY in. (read between the lines from the estimates above)
...but that's just me.

NOTE: The sole aim of this run down is to look in on which among the 2 coys offers the possibility of a better baigain in terms of price appreciation.

DISCLAIMER: This analysis is purely information driven. ...and NOT a reference to any sought of recommendation !!
Due diligence should still remain ur 1st priority.

onegentleguy:


It is well Sir !!

The idea was and should be to temporarily part ways with ACCESS, KEY INTO DIAMOND, enjoy some ride with him as ur concubine(given that he was and is still NOT fundamentally healthy), and 'dump him when ur soul deems fit'. ...and then wait on the RIGHT time to accept back ACCESS once the 'divorce litigation with him is settled.

Cheers.

Jonathan:
You never said you were in diamond. ^

onegentleguy:



Am out of DIAMOND BANK !!
...a juicy approx 205% ROI from a ride of a BEP of 0.71k to N2.17 is'nt such a bad idea.
With a stock like DIAMOND, I prefer not to be too greedy. ...so the fellow that bought from me can maybe ride on from where I stopped with the plausibility of any additional return.
While I owe no one a duty to state when I exit a coy, I have to do this to serve the interest of those who consulted me privately. ...and so to the few who sent me mails on DIAMOND, Pls take note of this !!
As I communicated in my PMs to u, my romance with DIAMOND(like skye) shall be strictly based on trade and never for the purpose of investing.
This exit strategy is also in line with my ealier post weighing the head to head benefits on the back of the ACCESS/DIAMOND merger.(see the parts in bold of the post above)

Pls do well to be guided accordingly.

CAVEAT: Not to be referenced as any sought of recommendation. ...due diligence still applies.

Jonathan:
You never said you were in diamond. ^

Jonathan:
Chai , that person that entered FO at 37 naira the other day. Chaiiii
There is God

onegentleguy:




Mr Jona I do not need to tell u when I key into a stock.
...especially if ur not part of the private crew I stated above. Pls read the part of the post in bold.

Cheers.

arduino:

Badt guy

salanda:


lol

onegentleguy:




Mr Jona I do not need to tell u when I key into a stock.
...especially if ur not part of the private crew I stated above. Pls read the part of the post in bold.

Cheers.

salanda:


so you don't need to tell us when you key out of the stock either

onegentleguy:




Mr Jona I do not need to tell u when I key into a stock.
...especially if ur not part of the private crew I stated above. Pls read the part of the post in bold.

Cheers.

Yayira:
Indeed, nobody dey agree say dem buy diamond na when dem sell with profit we dey know

onegentleguy:




Mr Jona I do not need to tell u when I key into a stock.
...especially if ur not part of the private crew I stated above. Pls read the part of the post in bold.

Cheers.

Beke2020:
Good day house and compliment of the period. Pls what are the Price's of
FBN Fidelity CON Oil FCMB

Mcy56:

As @ now:
FBN btw 7.45 - 7.80 /Fidelity 2.01 /CON Oil 23.30 /FCMB 1.85 ......look before you leap.