Manny Ita
Access Bank Plc has announced the signing of a definitive agreement with Finance Trust Bank Limited (FTB) based in Uganda, along with its Selling Institutional Shareholders, for the acquisition of a majority equity stake. This strategic move is expected to result in Access Bank owning approximately 80% of FTB, subject to the fulfillment of customary conditions precedent.
The transaction involves Access Bank acquiring a majority stake from existing shareholders and injecting capital to bolster FTB’s capital base. However, both the acquisition and the planned capital infusion are contingent upon regulatory approvals from the Central Bank of Nigeria (CBN) and the Bank of Uganda.
Access Holdings, in a statement released by its Company Secretary, Sunday Ekwochi, anticipates the completion of the transaction in the first half of 2024. Group Chief Executive of Access Holdings, Dr. Herbert Wigwe, emphasized the significance of this development as a crucial milestone in the bank’s five-year strategic plan, focusing on expanding into key markets.
Dr. Wigwe stated, “We are building a strong and sustainable franchise to support economic prosperity, encourage Africa trade, advance financial inclusion, thereby empowering many to achieve their financial dreams. The expansion to Uganda will support the realization of our aspiration to become Africa’s payment gateway to the world.”
Managing Director/Chief Executive of Access Bank, Roosevelt Ogbonna, highlighted the strategic importance of the ongoing expansion drive, positioning the bank to capitalize on opportunities arising from the African Continental Free Trade Agreement (AfCFTA).
Ogbonna remarked, “Trade flows in East Africa revolve around key trade corridors, with Uganda being a key player in the region. With the African Continental Free Trade Agreement, these corridors will continue to expand, and by deploying our best-in-class financial solutions, we are strategically positioned to deliver value for our stakeholders.”
He further emphasized that the transaction would enable Access Bank to leverage its expertise in the gender empowerment market to support FTB’s mission of providing innovative financial solutions, particularly for women who constitute around 40% of its customer base. The bank’s African growth strategy centers on consolidation within key regional trade blocs, aiming to maximize the benefits of its existing investments across the continent and deliver sustainable profits across all countries of operation.
