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Port Harcourt Shareholders Embrace Diamond Bank Rights Issue

Port-Harcourt-based shareholders of Diamond Bank Plc, Nigeria’s leading retail bank, have applauded the bank for its visionary approach to management in view of the ongoing rights issue.

The bank is issuing 8,685,145,863 ordinary shares of 50 Kobo each which will be sold to existing shareholders

whose names appear on the Registrar of Members and transfer books of the bank as at the close of trading on Friday, June 13, 2014, at N5.80 kobo. The stocks will be allocated on the basis of three ordinary shares for every five held.

The shares are payable in full on acceptance and tradeable on the floor of the Exchange throughout the period of the Issue. The acceptance list opened since Wednesday, July 30, 2014 and closes at the close of business on Tuesday, August 26, 2014.

Speaking at the Shareholders Forum held in Port Harcourt, the shareholders lauded the bank for its efforts at raising additional funds in order to boost its operations and deliver better returns to the investors.

Amaopusenibo Obomanu, an official of the Port Harcourt Shareholders Association said: “I think the Diamond Bank Offer is a very good idea and like I mentioned to management we are likely to take up every share that is offered. The bank seems to be doing well in the last three years and I must congratulate them for having scaled the hammer of the last CBN governor. I wish them all the very best for the future.”

Sylvester Ofulue: “The Rights Offer is basically discounted. It is an opportunity for people to up their holding in Diamond Bank. If you have followed the bank in the last three years you will see the phenomenal turnaround that they have achieved in that time. They may not have paid dividend the way others have done but what will see is that you have gained a lot of capital appreciation in the last two to three years. Some people entered at two, some three, some four. And from that point forward you will have seen a growth of at least 50% return on your investment at Diamond Bank and that is very encouraging. Nobody will see that and walk away. That’s why we are taking the Rights Issue the way we are jumping at it now.”

Earlier, Dr Alex Otti, Group Managing Director/CEO, Diamond Bank, said the funds raised would be deployed into branch network expansion and renovation, information technology upgrade and up-scaling of the retail segment of its operations.

“The bank intends to expand its branch network to 350 from the current 257. Following this projection, more than eighty percentage of the money raised will be injected into it. A part of the funds will be channeled toward strengthening the bank’s competitive capacity in the middle market by developing and sharpening strategic focus, especially in the area of MSMEs, sole proprietorship and the corporate business sector.” Otti added.

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