Joy Agwunobi
Access Holdings, a leading African financial services group, has announced that its subsidiary, Access Bank, has entered into a definitive agreement to acquire a majority stake in Finance Trust Bank (FTB), a leading Ugandan commercial bank.
Under the terms of the agreement, Access Bank will acquire approximately 80 per cent of the shares in FTB, subject to regulatory approvals.In addition to the majority stake, Access Bank will also acquire the shares held by FTB’s institutional shareholders, who have decided to exit as strategic, long-term investors.
The acquisition is subject to regulatory approval from the Central Bank of Nigeria (CBN) and the Bank of Uganda (BOU), which is expected to be completed in the first half of 2024. If approved, Access Bank will own approximately 80 per cent of FTB’s shares. This will significantly increase Access Bank’s presence in East Africa and position it as one of the region’s leading financial services providers.
The deal comes as commercial banks in Uganda are looking to increase their capital, and it will provide Access Bank with a strong platform to collaborate with FTB and its stakeholders to further financial inclusion, diversify its product offering, and improve customer service.
With a presence in more than 20 countries worldwide, Access Bank has a wealth of experience and a global network that will benefit FTB’s customers and help them expand their reach and trade opportunities.
Commenting on the transaction, Roosevelt Ogbonna, Access Bank’s managing director, said: “The prospective acquisition of FTB is an important milestone for Access Bank as we seek to strengthen our regional presence in the East African Community trade region. This move aligns with our five-year strategic plan to achieve scaled benefits across key African markets.”
Ogbonna noted that in addition to the bank’s expansion goals, the acquisition would also allow it to expand its community and women impact initiatives. The bank plans to build on FTB’s mission to deliver innovative financial solutions, particularly to women.
The Access Bank MD also expressed confidence that the bank’s history and experience in women empowerment initiatives will be of great benefit to FTB’s women-centric deposit and loan portfolio, which comprises about 40 per cent women as well as the wider Ugandan community.
According to Annet Nakawunde Mulindwa, managing director of Finance Trust Bank, the partnership with Access Bank marks a significant milestone in the bank’s growth journey. She stated that the partnership will provide the bank with an opportunity to offer its customers an even wider range of innovative products and services. Mulindwa also expressed her gratitude to the bank’s customers, employees, and shareholders for their support as the bank embarks on this new chapter.
“Leveraging Access Bank’s global presence and expertise, we look forward to reaching new heights and continuing to serve as a trusted financial partner to our customers and communities across Uganda,” Mulindwa said.
Access Holdings stated with this transaction, both banks will be able to combine their technological resources and expertise, allowing FTB customers to benefit from the secure and diverse digital platforms offered by Access Bank. FTB will also be able to tap into Access Bank’s expertise in developing deep sectoral relevance across different industries, which will help it generate revenue from new customer segments in both business and retail banking.
