Access Bank, Nigeria’s biggest lender by customer base, says it has entered into a definitive and binding agreement with ABC Holdings regarding a proposed acquisition of African Corporation of Botswana (BancABC Botswana).
This was announced in a statement signed by Sunday Ekwochi, Access Bank’s company secretary, on Monday.
The ABC Holdings is a subsidiary of Atlas Mara Limited, a financial services group.
In December 2020, Access Bank said it was in talks to acquire some assets in Botswana, Zimbabwe and Zambia belonging to Atlas Mara, in order to expand its reach in Africa.
According to the statement, Access Bank will acquire 78.15 percent of the issued share capital of BancABC Botswana.
The transaction is expected to conclude in the first half of 2021, however, it is subject to the fulfilment of various customary conditions precedent including certain regulatory requirements by the Bank of Botswana and consents from other relevant authorities and certain counterparties.
Commenting on the transaction, Herbert Wigwe, group managing director and chief executive officer of Access Bank, said the acquisition will position the bank to deliver a more complete set of banking solutions to its clients active in and across the Southern African Development Community (SADC) and Common Market for Eastern and Southern Africa (COMESA) regions.
“This transaction complements our recent strategic growth transactions in South Africa, Zambia and Mozambique,” Wigwe said.
“We are 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.”
In his remarks, Kgotso Bannalotlhe, BancABC Botswana managing director said: “We are delighted to have Access Bank on board as a shareholder and strategic partner as we continue to execute on our medium-term growth objectives.
“This transaction represents an opportunity for BancABC Botswana to be part of one of the largest banking groups in Africa and benefit from Access Bank’s strong corporate banking franchise, digital banking capabilities, and innovative product offering, as well as trade finance and international banking that leverage Access Bank’s footprint across Southern Africa and the SSA region more broadly.”