One of Nigeria’s biggest banks, Access Bank has concluded plans to acquire a majority stake in Botswana’s African Banking Corporation as it seeks to entrench itself on the continent.
According to reports, the African banking group started by former Barclays Plc Chief Executive Officer, Bob Diamond, has agreed to sell its stake in African Banking Corporation to Access Bank.
This came just a month after the bank’s acquisition of a South African bank.
Access Bank is expanding across the African continent to counter stagflation and dollar shortages in Nigeria that have frustrated businesses and shrink the lending market.
The Nigerian bank will acquire just over 78 percent of BancABC Botswana for an undisclosed cash sum of around 1.13 times book value as well as a two-year deferred payment, a statement from Atlas Mara, the financial service company selling its stake in the Botswana bank to Access Bank, said on Monday.
The deal with ABC Holdings, the local unit of London-listed Atlas Mara, expands Access Bank’s African presence to 10 countries.
It is expected to close before the end of the second quarter.
The Managing Director of Access Bank, Herbert Wigwe, confirmed the deal in a statement.
“We remain committed to a disciplined and thoughtful expansion strategy in Africa, which we believe will create strong and sustainable returns.
“BancABC is Botswana’s fifth-largest bank and has a quality retail book with the scope for expansion into corporate and small to medium-sized enterprise lending,” he said.
Join the conversation
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.
INVESTIGATION: How Kano SUBEB awarded contracts to inactive contractors, non-existent schools
In an effort to address issues hindering quality education, the Kano State Government in 2020 awarded N88,406,667.10 for the construction...
SPECIAL REPORT: Hike in gas price forces more Nigerians to use coal, sawdust, as smoke kills 93,300 yearly
In the build-up to the 27th Conference of Party (COP 27), Nigeria recently launched its energy transition plan (ETP) as one of...
INVESTIGATION: How roadside foods endanger consumers’ life with trans fat in northern Nigeria
With an estimated 854,000 deaths in Nigeria, and 3,229 attributed to trans fatty acids (TFA) -related cardiovascular deaths, ADESOLA IKULAJOLU visited Nigeria’s...
INVESTIGATION: Untold story of Ondo oil producing communities battling poor health system
Access to quality healthcare is one of the nightmares of communities in Ilaje local government area of Ondo State. Despite...
FEATURE: Ogun residents, waste collectors trade blames, as refuse litter environment
TIJANI ABDULKABEER, a journalist from the University of Ibadan, during a recent trip to Sango Otta, Ogun State took a look...