Nigeria’s Access Bank has acquired 78.15 percent stake in African Banking Corporation of Botswana Limited, according to a regulatory filing by the lender with the Nigerian Exchange Limited (NGX).
The communication with the regulator was signed by the lender’s company secretary, Sunday Ekwochi.
The bank said the acquisition would form part of the bank’s linkage point for trade and payments in Southern Africa and the larger Common Market for Eastern and Southern Africa region.
BankABC, the statement noted is Botswana’s fifth largest bank with sustainable capitalisation and franchise to aid its growth in its local market.
The acquisition would provide an opportunity for Access to deploy its digital platforms and product suites to benefit BankABC Botswana’s customers and enable it compete effectively across its core business segments.
Commenting on the deal, Access Bank chief executive, Herbert Wigwe, said that the acquisition would provide significant synergies through the combination of BankABC Botswana’s “strong retail banking operations” with Access Bank’s wholesale banking capabilities.
“It will also strengthen the quality of earnings through revenue diversification and growth in the corporate and SME banking segments for BankABC Botswana,” he said.
Wigwe added that the combination would take Access a step further in its banking and corporate goals.
In April, Access Bank said it 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, Atlas Mara said in a statement 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.
Also in May, the bank completed all regulatory procedures on the acquisition of South Africa’s Grobank Limited and officially renamed the bank Access Bank South Africa Limited.