Diamond Bank Denies Reports Of Planned Fresh Capital Injection

The board of Diamond Bank Plc, on Friday wrote to the Nigerian Stock Exchange (NSE), denying media reports of possible fresh capital injection by an unnamed new investor
Such reports, the bank said in a statement by Uzoma Uja, its company secretary/legal adviser, are far from the truth, adding that “it is not in talks with any party, global or otherwise, for any capital injection.”
While admitting the need to shore up Capital Adequacy Ratio (CAR), the statement said Diamond bank would prefer an internal capital management, which was earlier explained to analysts and investors.
“While we recognize the need to expand our options in the short term, we have no concrete new development to report and will notify the exchange once there is any,” the statement stressed further.
Reuters had on Thursday quoted banking sources as saying on Wednesday that Diamond Bank was in talks with new investors, at a time Oluseyi Bickersteth, its chairman, and three other directors resigned with immediate effect.
The bank’s shares hit a four month high on Thursday, a day after the bank said the four directors resigned, in a move that could pave the way for the mid-tier lender to attract new investors.
The bank rose for the fourth straight session, up 7.19% to N1.49 per share, bringing appreciation to 24% since the start of the week.
The mid-sized bank did not provide any reason for the resignation of Bickersteth, appointed in July, or for the resignations of the other directors.