Monday, November 28, 2022

Access Bank will enter Angolan market by acquiring majority of Finibanco.

The holding company of Access Bank Plc, Access Holdings Plc, has declared its intention to purchase a majority equity position of 51 percent in Finibanco, a bank based in Angola.

The company secretary, Sunday Ekwochi, disclosed this in a corporate filing on Tuesday with the Nigerian Exchange Limited (NGX).

In Angola, Finibanco is a full-service commercial bank with over 20 locations and total assets of about $300 million.

According to Ekwochi, the deal would be completed by purchasing existing shares held by Montepio, the holding company for Banco Montepio, one of Portugal’s well-known commercial banks.

He claims that the Angolan market, the seventh-largest country overall and the sixth-largest economy in Africa, has a significant potential for the bank’s expansion aspirations due to its big and diverse natural resource base and expanding population.

“The transaction furthers the bank’s strategy to be Africa’s payment gateway to the world whilst working with other Africa-focused multilateral to provide robust and efficient payment platforms and ecosystems to serve the continent,” the statement adds.

“The prospective operation is expected to contribute strongly to the bank’s overall growth path and financial results over the long-term.

“The transaction, which is subject to regulatory approvals in Nigeria and Angola is expected to close in the first half of 2023 following fulfilment of customary conditions precedents.

“It will be consummated at 1.0x tangible book value less pre-agreed adjustments to be determined by a customary completion audit.

“Upon completion of the transaction, the bank is expected to increase its shareholding in Finibanco S.A and has reached certain conditional agreements in this regard.”

Herbert Wigwe, group chief executive officer of the corporation, said, “At Access, our vision remains clear as ever, and our determination to harness accretive opportunities within and outside Nigeria is our core strategic focus.

“Angola represents an opportunity for our shareholders to participate in what we believe will engender stronger value upside as Africa fully emerges.

“We remain committed to making these disciplined and well-structured investments towards creating a strong, holistic platform that will be competitive, diversified, and compelling for years to come.”

In accordance with its disclosure duties, the company would keep the market informed about the transaction, Ekwochi stated.

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