Access Bank, the flagship subsidiary of Access Holdings Plc, continues its African expansion by entering into a transaction with the Ugandan-based Finance Trust Bank (FTB) Limited and its shareholders for the acquisition of a majority equity stake in FTB.
Access Bank Company Secretary, Sunday Ekwochi, in a statement filed with the Nigerian Exchange Limited on Wednesday, said the proposed acquisition is subject to regulatory approval.
Access Holdings has in recent days, moved to expand its business segments with the acquisition of an insurance brokerage firm, Megatech Insurance Brokers Ltd and the floating of a consumer lending subsidiary, named Oxygen X Finance Company Limited to provide digital lending solutions.
In this latest move to acquire FTB, the Holdco said that the transaction would see Access Bank acquire a majority stake from existing shareholders and inject capital to increase FTB’s capital base; “Both which are subject to regulatory approvals by the Central Bank of Nigeria and Bank of Uganda.
“Following the conclusion of customary conditions precedent and the anticipated closing of the transaction. targeted for the first half of 2024, Access Bank would own an estimated 80 per cent shareholding in FTB,” the statement read in part.
Dr. Herbert Wigwe, Group Chief Executive of Access Holdings said, “The transaction marks an important milestone for Access Bank as it moves us closer to the achievement of our five-year strategic plan through continued expansion into key markets.
“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 realization of our aspiration to become Africa’s Payment Gateway to the World.”
Roosevelt Ogbonna, Managing Director of Access Bank Plc, said, “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.”
