Access Bank has finalized the repurchase of 78.15% of the interests of the African Banking Corporation of Botswana Limited (BancABC Botswana), currently the fifth largest lender in this southern African country.
The acquisition is part of the plan to expand Access Bank’s hold for trade and payments in the region and the wider COMESA regional economic community, Nigeria’s largest bank said by assets in a note published Tuesday by the Nigerian Stock Exchange.
The bank wants operations outside its Nigerian base to contribute at least 30 percent of the group’s profit for this year, buying a controlling stake in BancABC Botswana bringing its acquisitions in Africa so far this year to four.
Almost six months of preparation, the agreement was announced for the first time in April with a definitive buyout expected in the middle of the year.
No disclosure was made of the value of the transaction in the document seen by PREMIUM TIMES, but the purchase of the stake could push the valuation of Access Bank’s assets reasonably beyond N10.1 trillion at first. semester 2020 at the end of this trimester.
“We are delighted with the successful conclusion of this transaction which will provide significant synergies by combining the strong retail banking operations of BancABC Botswana with the wholesale banking capabilities of Access Bank,” said Herbert Wigwe, Group Managing Director.
“It will also enhance the quality of earnings through income diversification and the growth of corporate and SME banking segments for BankABC Botswana. “
Access Bank shares opened for trade in Lagos on Tuesday at 9.40 naira per unit.
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