Access Holdings has announced that its subsidiary, Access Bank has signed a definitive agreement with Finance Trust Bank Limited (FTB) and its Selling Institutional Shareholders for the acquisition of a majority equity stake in the Ugandan-based bank.
This was revealed in a statement signed by Sunday Ekwochi, Secretary at Access Holdings filed on the Nigerian Exchange Limited (NGX) and made available to the investment public recently.
The move would enable the Nigerian bank to own about 80 per cent shareholding in FTB following the conclusion of customary conditions precedent.
The transaction involves Access Bank’s acquisition of a majority stake from existing shareholders and a capital injection to increase FTB’s capital base.
However, both the acquisition and planned capital boost remained subject to regulatory approvals by the Central Bank of Nigeria (CBN) and the Bank of Uganda.
Commenting on the transaction, Group Chief Executive, Access Holdings, Dr. Herbert Wigwe, said that the transaction which marked an important milestone for the bank should be concluded in the first half of 2024, and “moves closer to the achievement of our five-year strategic plan through continued expansion into key markets”.
He said, “We are building a strong and sustainable franchise to support economic prosperity, encourage African trade and advance financial inclusion thereby empowering many to achieve their financial dreams. The expansion to Uganda will support the realisation of our aspiration to become Africa’s payment gateway to the world.”
Also, Managing Director/Chief Executive of Access Bank, Roosevelt Ogbonna, said the ongoing expansion drive would position the bank to take advantage of the African Continental Free Trade Agreement (AfCFTA).
In his words, “Trade flows in East Africa revolve around key trade corridors, with Uganda being a key player in the region. With the African Continental Free Trade Agreement, these corridors will continue to expand and by deploying our best-in-class financial solutions, we are strategically positioned to deliver value for our stakeholders.
“The transaction will enable the Bank to leverage its strong experience in the gender empowerment market to support FTB’s mission to deliver innovative financial solutions to customers, especially women which currently comprises about 40 per cent of its customers.
“The Bank’s African growth strategy is focused on consolidation within the key regional trade blocs to harness the full benefits of its legacy investments across the continent. The Bank will continue to deepen its market share to deliver sustainable profit across all countries of operations”, he concluded.
