Ibekimi Oriamaja Reports
Access Bank Plc has reached an agreement with Montepio Holding SGPS S.A to acquire a 51% stake in Finibanco Angola S.A., a leading Angolan bank.
Access Holdings Plc, the holding company for Access Bank, stated in a regulatory filing yesterday at the Nigerian Exchange (NGX) that the Transaction would be carried out through the purchase of existing shares owned by Montepio, the holding company for Banco Montepio, one of Portugal’s well-established commercial banks. Finibanco Angola S.A. (Finibanco) is a profitable, well-capitalized full-service commercial bank with over 20 branches and total assets of around $300 million. It has been in operation in Angola since 2008.
With a vast and diverse natural resource base and a growing population, Angola has the sixth largest economy in Africa and the seventh largest country overall.
Following the fulfillment of customary conditions precedents, the transaction, which is subject to regulatory approvals in Nigeria and Angola, is expected to close in the first half of next year. It will be completed at 1.0 times tangible book value less pre-agreed adjustments determined by a typical completion audit.
Access Bank expects to increase its shareholding in Finibanco S.A. following the completion of the transaction and has reached certain conditional agreements in this regard.
Dr Herbert Wigwe, Group Chief Executive Officer of Access Holdings Plc, stated that the Angolan acquisition represents a significant opportunity for the bank’s growth plans.
According to him, the transaction advances the bank’s strategy of serving as Africa’s payment gateway to the rest of the world while collaborating with other Africa-focused multilaterals to provide robust and efficient payment platforms and ecosystems.
He stated that the prospective operation is expected to significantly contribute to the bank’s long-term growth and financial results.
“At Access, our vision remains as clear as ever, and we are determined to capitalize on accretive opportunities both within and outside of Nigeria.” “We believe that Angola represents an opportunity for our shareholders to participate in what we believe will result in greater value upside as Africa fully emerges,” Wigwe said.
