Leading Nigerian lender, Access Bank Plc is set to buy a majority stake in the African Banking Corporation of Botswana (BancABC), Botswana’s fifth largest bank and a subsidiary of Atlas Mara Limited after agreeing to buy off 78.15% stake in the bank.
The cost of the bank’s acquisition is not known but reports say it is for a cash sum of about 1.13 times the book value with a two year deferred payment according to a statement by Atlas Mara, “the Transaction is subject to fulfillment of various customary conditions precedent including certain regulatory requirements and consents from other relevant authorities and certain counterparties.”
Commenting on the purchase, Michaeal Wilkerson, Chairman of Atlas Mara said, “The Transaction announced today is consistent with the objectives articulated by the Company as part of its previously-announced strategic review and overall debt restructuring.
‘’The pandemic-related economic slowdown in 2020 led to a broadening of the initially-announced strategic review and an acceleration of potential transaction discussions in-line with the Company’s objective of a comprehensive restructuring of the Company’s and ABCH’s balance sheets. This Transaction, like the previously announced transactions for Mozambique, Rwanda and Tanzania, is consistent with this strategy and will help realize value for the Group’s creditors and other stakeholders.’’
The purchase is coming barely a month after the Nigerian lender acquired South Africa’s Grobank in what appears to be a strategic move to expand its tentacles across Africa.
This latest acquisition brings Access Bank’s total presence across Africa to 10 African countries.