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.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now