Access Bank has agreed to a deal to buy the majority stake in Ugandan-based Finance Trust Bank Limited, its parent company Access Holdings Plc announced in a statement on Wednesday.
The definitive agreement also involved the selling of institutional shareholders of Finance Trust Bank and would transfer 80 per cent ownership of the East African lender to Access Bank when the transaction is completed.
The deal is hoped to reach closure by June, when all the regulatory approvals from both the Central Bank of Nigeria and the Bank of Uganda will have been received, according to a regulatory filing posted Wednesday.
Access Bank expects to inject fresh capital to bump up the capital base of Finance Trust Bank in its bid to gain a foothold in the Ugandan market.
The announcement comes barely a week after Nigeria’s biggest lender by assets disclosed it had consummated the purchase of African Banking Corporation Zambia Limited after more than eight months in the works.
This week, Access Holdings said it has branched out into insurance brokerage, following the acquisition of Lagos-based Megatech Insurance Brokers, and announced on Wednesday its receipt of preliminary approval to set up a consumer lending arm to be called Oxygen X Finance Company Limited.
Both moves align with the financial services group’s plan to diversify into other areas within the financial services sector outside commercial banking – its primary business.
“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,” said Access Holdings CEO Herbert Wigwe.
“The expansion to Uganda will support the realisation of our aspiration to become Africa’s Payment Gateway to World,” he added.
“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,” Roosevelt Ogbonna, the Managing Director of Access Bank said.
