Access Holdings Plc said its subsidiary, Access Bank has agreed to acquire a majority stake of 80 per cent in Finance Trust Bank Limited (FTB) in Uganda.
The deal will also see Access Bank concurrently acquiring the shares currently held by FTB’s institutional shareholders who have sought to exit to a strategic, long-term shareholder.
The transaction is subject to regulatory approvals by the Central Bank of Nigeria (CBN) and Bank of Uganda, and is expected to close in the first half of 2024, following the fulfilment of customary conditions precedent.
Following the anticipated closing of the transaction, Access Bank would own an estimated 80 per cent shareholding in FTB.
Coming at a time when commercial banks in Uganda are looking to increase their capital, this strategic acquisition presents an opportunity for Access Bank to partner with FTB and its stakeholders to create more significant opportunities for financial inclusion, product diversification, and, ultimately, greater customer-centricity.
Speaking on the Transaction, Roosevelt Ogbonna, managing director of Access Bank, said: “The prospective acquisition of majority equity stake in Finance Trust Bank marks an important milestone for Access Bank as we strengthen our regional presence in the East African Community trade region.
“This also moves us closer to realising our five-year strategic plan through continued expansion to achieve scaled benefits across key African markets.”
He noted that, “beyond our expansion goals, this deal will enable the Bank to deepen its community and women impact initiatives, as we will be building on FTB’s mission to effectively deliver innovative financial solutions to customers and stakeholders, especially women.
“Our storied history and experience in gender initiatives and women empowerment will greatly benefit FTB’s current deposit and loan portfolio, which currently comprises about 40 per cent women and the larger Ugandan community.”
Annet Nakawunde Mulindwa, managing director of Finance Trust Bank, said: “Finance Trust Bank is thrilled to announce this transformative partnership with Access Bank, as it marks a pivotal moment in our growth journey and presents an extraordinary opportunity for our valued customers and stakeholders.
“This strategic alliance will fortify our position in the financial landscape and enable us to offer our customers a broader array of innovative products and services.”
She stated that, “as we embark on this journey, we extend our heartfelt appreciation to our loyal customers, dedicated employees, and valued shareholders for their unwavering support.
“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.”
The transaction will enable both banks to merge their technological resources, providing Finance Trust Bank customers with access to secure and diversified digital platforms for seamless transactions and banking services provided by Access Bank.
Furthermore, FTB would be able to leverage Access Bank’s expertise in building deep sector relevance across several industries and tap into revenue opportunities across new customer segments which cut across business and retail banking.
