- Access Bank Plc has finally completed the acquisition of a majority stake of about 78.15% in African Banking Corporation of Botswana Limited (‘BancABC Botswana’).
- The recent move which is in line with the Bank’s commitment to expanding its presence in the African continent
- Earlier in the year, Access Bank reached an agreement to acquire a majority stake in BancABC but has not completed the takeover
Access Bank Plc has acquired a majority share in African Banking Corporation of Botswana Limited (‘BancABC Botswana').
According to the reports, the deal would see Access Bank acquire BancABC Botswana for an undisclosed cash amount of about 1.13 times the book value plus a two-year deferred payment.
Following the conclusion of the deal, Access Bank now has a presence in ten African countries, after similar acquisitions in financial institutions domiciled in Zambia, South Africa, Mozambique, among others.
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Reacting to the acquisition in a statement signed by the corporate secretary, Sunday Ekwochi, the bank noted it now has the controlling share of 78.15 percent.
BancABC Botswana is a retail-focused commercial banking institution listed on the Botswana Stock Exchange.
Access Bank reacts
According to the statement, the acquired bank is the fifth-largest bank in Botswana and is a well-capitalized franchise poised for growth in its local market.
Ekwochi said the new acquisition would form part of the bank’s nexus for trade and payments in southern Africa and the broader Common Market for Eastern and Southern Africa (COMESA) trade region.
He added that BancABC’s achievements in the retail banking space would provide an opportunity for Access Bank to deploy its best-in-class digital platforms and product suites to Botswana’s customers and enable it to compete strongly across its core business segments.
Speaking on the transaction, Herbert Wigwe, the group managing director of Access Bank, said:
“We are delighted with the successful completion of this acquisition, which will result in considerable synergies by merging BancABC Botswana's strong retail banking business with Access Bank's wholesale banking capabilities.
“It will also strengthen the quality of earnings through revenue diversification and growth in the corporate and SME banking segments for BancABC Botswana. The combination is another step towards our broader vision of becoming the World’s Most Respected African Bank.”
The recent majority stake is the fourth acquisition by the Nigerian lender in 2021. In May, Access Bank completed the acquisition of Grobank in South Africa.
Before Grobank, Acces bank had acquired Cavmont Bank, Zambia and BancABC Mozambique.
Access bank changes grobank limited name after acquiring major stake
Meanwhile in a recent report Legit.ng reported that following the acquisition of South African bank, Grobank Limited, Access bank has effected the name change.
The Nigerian lender changed the name to Access Bank South Africa after taking up the majority stake of Grobank Limited by the second quarter of this 2021.
The change was made in line with the company's strategy of selling its services across Africa with the Access brand name. According to a statement, Grobank Limites now bears Access Bank South Africa.