BEVERLY HILLS, April 19, (THEWILL) – Access Bank Plc has concluded plans to acquire BancABC Botswana, a commercial bank officially known as ABC Holdings Limited.
The bank, in a statement signed on Monday by its Company Secretary, Sunday Ekwochi, said it had entered into a definite and binding agreement with a subsidiary of Atlas Mara Limited, ABC Holdings Limited, for the acquisition of a 78.15 per cent shareholding in African Banking Corporation of Botswana Limited (BancABC Botswana).
The transaction, which is subject to regulatory approvals and customary conditions precedent, is expected to close before the end of this quarter.
ABC Holdings is a subsidiary of the London Stock Exchange listed group, Atlas Mara Limited.
Botswana is renowned for its quality sovereign credit rating and stability.
Access Bank’s market entry is expected to further solidify its strategy as, “a strong banking partner in key verticals across retail and corporate banking, including especially supporting trade in payments across southern Africa and Sub-Saharan Africa more broadly.”
Commenting on the deal, the GMD/CEO, Access Bank, Herbert Wigwe, said: “We remain committed to a disciplined and thoughtful expansion strategy in Africa, which we believe will create strong, sustainable returns for our shareholders and stakeholders at large, over the medium and long-term.
“The establishment of Access Bank through this acquisition in the Republic of Botswana will position the bank to deliver a more complete set of banking solutions to its clients active in and across the SADC and COMESA regions.”
He emphasised that Access Bank is “building a bank of the future that Africans across Africa and the world will be proud of and look forward to welcoming the employees, customers and other stakeholders of BancABC Botswana to Access Bank.”
Nigerian lenders have been seeking new avenues to boost profit amid slow economic growth at home, a drop in government bond yields and a rise in restructured loans due to the impact of the COVID-19 pandemic.
In March Access Bank bought a controlling stake in South Africa’s Grobank for around $60 million, becoming the first Nigerian lender to venture into South Africa. It has also struck recent deals in Zambia and Mozambique.
“This transaction complements our recent strategic growth acquisitions in South Africa, Zambia and Mozambique”, the bank’s GMD/CEO, Herbert Wigwe, said.
