Access Bank eyes Angolan market with acquisition of majority stake in Finibanco

By Chisom Nwatu

 

 

Access Holdings Plc, the holding company of Access Bank Plc, is targeting to enter the Angolan market as it has announced its plans to acquire a 51 percent majority equity stake in Finibanco S.A., an Angolan bank.

The transaction would be effected through the purchase of existing shares owned by Montepio, the holding company for Banco Montepio, one of Portugal’s well-established commercial banks, Sunday Ekwochi, the company’s secretary, announced in a corporate filing on the Nigerian Exchange Limited (NGX) on Tuesday.

Finibanco Angola S.A. is a well-capitalised full-service commercial bank with over 20 branches and around $300 million in total assets in Angola. It has operated in Angola since 2008.

Angola is the sixth-largest economy in Africa and the seventh-largest country overall, with a vast and diversified natural resource base and a growing population and, according to Ekwochi, this represents a strong potential for the bank’s growth aspirations, 

“The transaction furthers the bank’s strategy to be Africa’s payment gateway to the world whilst working with other Africa-focused multilaterals to provide robust and efficient payment platforms and ecosystems to serve the continent,” Access Holdings Plc said in the filing.

The prospective operation is expected to contribute strongly to the bank’s overall growth path and financial results over the long term, it said.

It said the transaction, which is subject to regulatory approvals in Nigeria and Angola, is expected to close in the first half of 2023 following fulfilment of customary conditions precedents.

“It will be consummated at 1.0x tangible book value less pre-agreed adjustments to be determined by a customary completion audit,” the company said.

“Upon completion of the transaction, the bank is expected to increase its shareholding in Finibanco S.A and has reached certain conditional agreements in this regard,” it said.

Ekwochi added the company would continue to update the market on the transaction in line with its disclosure obligations.

Herbert Wigwe, group chief executive officer of the corporation, in his remarks said the vision at Access remains clear as ever, and the determination to harness accretive opportunities within and outside Nigeria remains the core strategic focus.

“Angola represents an opportunity for our shareholders to participate in what we believe will engender stronger value upside as Africa fully emerges,” Wigwe said.

“We remain committed to making these disciplined and well-structured investments towards creating a strong, holistic platform that will be competitive, diversified, and compelling for years to come,” he said.