Nigeria In One Minute
Access Bank investors’ profit-taking cost shareholders N5.33bn
Access Bank investors cashed in on the positive sentiment that greeted the acquisition of African Banking Corporation of Botswana Limited (BancABC Botswana) last week.
The Nigerian lender continued its inorganic growth approach which has seen the Herbert Wigwe-led company acquire three other African banks, outside Nigeria, in 10 months.
The Corporate Secretary to Access Bank, Sunday Ekwochi, had stated that the borrower took controlling stake of 78.15 percent in the Botswana bank, and this was greeted by positive sentiment in the capital market, according to Ripples Nigeria analysis.
Read also: Access Bank acquires majority stake in Botswana lender
After the acquisition was reported last week Tuesday, Access Bank stock value gained N0.15kobo same day to clock N9.6kobo per share from N9.45kobo, and appreciated the next day by 2.1 percent.
This took the market capitalisation of the bank from N341.23 billion on Tuesday to N348.34 billion on Wednesday, handing shareholders N12.44 billion within two days.
But the stock price shrank back to N9.6kobo on Thursday, and traded flat on Friday following profit-taking among shareholders of the lender, costing stakeholders N5.33 billion from the previous gain.
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