ACCESS Bank Plc has entered into an agreement with ABC Holdings Limited to acquire African Banking Corporation of Mozambique.
The bank disclosed this on Wednesday in a statement.
ABC Holdings is a wholly owned subsidiary of Atlas Mara Limited.
Access Bank noted that the first tranche is an initial cash consideration for a 49 per cent shareholding and will be increased to a majority stake in the second tranche, which are still subject to regulatory approvals.
Access Bank’s Group Managing Director Herbert Wigwe, said that the management was consistently focused on building the scale needed to become a leading African bank.
This, he said, would be based on a principle that leverages its experienced and growing talent base and key stakeholder partnerships towards driving sustainable impact and profitability.
He said, “Today’s announcement demonstrates further commitment to delivering our strategic aspirations of becoming Africa’s Gateway to the World in line with our vision to be the World’s Most Respected African Bank.
“These transactions will significantly strengthen our presence in Southern Africa and further our footprint for growth in the South African Development Community region.
“With a broader presence across the continent, Access Bank will be better placed to support our customers who are increasingly looking towards intra Africa growth.
“The proposed transactions will accelerate the Bank’s momentum towards delivering world class banking services to an expanded customer base across Africa.”
He added that goal of the bank remained to reach and impact 100 million unique customers across the continent.
The acquisition follows regulatory approval to commence operations in Mozambique under the name Access Bank Mozambique.
The bank said the transaction would be funded from the capital invested in Access Bank Mozambique and would result in Access Bank Mozambique becoming the 7th largest bank in the country, from the 20th spot.
The bank in August this year acquired Cavmont Bank in Zambia.
Access Bank in the statement said it also received the Central Bank of Nigeria’s Approval-in-Principle to restructure to a holding company on Wednesday.
The new holding structure will also boost Access Bank’s operational efficiencies, talent retention as well as healthy governance.
