- Acquires ABC in Mozambique
- Raises stake in GroCapital
- Transaction, acquisition await regulatory approvals
- To become HoldCo with CBN’s Approval-in-Principle
Access Bank, Nigeria’s Tier-1 lender, continues to make its African push in line with its strategy to become world’s most respected African bank, with the final acquisition of African Banking Corporation in Mozambique by its subsidiary in that country, Access Bank Mozambique.
It has now received regulatory approvals to begin operations on the back of the acquisition, creating a much bigger banking entity and operations in the southern African country. The Nigerian bank’s subsidiary had earlier entered into a definitive agreement with ABC Holdings Limited to acquire the African Banking Corporation for cash, in a combination of definitive and contingent considerations.
In a corporate disclosure filing it made to the Nigerian Stock Exchange signed by Sunday Ekwochi, the company secretary, the bank also announced that it has also entered the South African market with a definitive agreement with GroCapital Holdings to invest into GroCapital Limited in a bid to acquire 49 per cent shareholding in the company and later on increase it to a majority stake. This investment will come in two tranches.
According to the bank, the aim of the transactions is to bolster its market position and building on its strategy of delivering a robust banking operation which connects key African markets. The disclosure further revealed that the transactions will result in a more connected African banking network that builds on the bank’s existing foundation and enhances its value proposition to stakeholders, including customers and employees.
Herbert Wigwe, the bank’s group managing director and chief executive officer, speaking on the latest development, said: “We have consistently said that we are focused on building the scale needed to become a leading African bank; one that leverages our experienced and growing talent base and key stakeholder partnerships towards driving sustainable impact and profitability. “Today’s announcement demonstrates further commitment to delivering our strategic aspirations of becoming Africa’s Gateway to the world in line with our vision to be the world’s most respected African bank.
“These transactions will significantly strengthen our presence in southern Africa and further our footprints for growth in the SADC region. With a broader presence across the continent, Access Bank will further be better placed to support our customers who are increasingly looking towards intra-Africa growth. The proposed transactions will accelerate the bank’s momentum towards delivering world-class banking services to an expanded customer base across Africa. Our goal remains to reach and impact 100 million unique customers across the continent,” Wigwe further explained.
In a related development, the bank also announced that it has received approval-in-principle from the Central Bank of Nigeria (CBN) to restructure into a holding company (HoldCo). The proposed structure would enable the bank to further accelerate its objectives around business diversification, improved operational efficiencies, talent retention as well as robust governance.
It said further details regarding the HoldCo structure will be communicated to the public in due course.
Energy June 12, 2020