Access Bank Plc has entered into a binding agreement with Montepio Holding SGPS SA to acquire a 51% majority shareholding in Finibanco Angola S.A.
This was disclosed by Access Holdings Plc in a corporate action filed with the Nigerian on Tuesday, seen by Investogist.
The transaction which is subject to regulatory approvals in Nigeria and Angola is expected to close in the first half of 2023 following fulfillment of customary conditions precedents.
Access Bank Plc is wholly owned subsidiary of Access Holdings Plc.
“Finibanco Angola S.A. (“Finibanco) is a profitable, well-capitalised full-service commercial bank with over 20 branches and around US$300 million in total assets that has operated in Angola since 2008,” Access Holdings said in the document.
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It explained that the “transaction will be effected via the purchase of existing shares owned by Montepio-the holding company for Banco Montepio, one of Portugal’s well-established commercial banks.
“The Angolan market as the 6th largest economy in Africa and the 7th largest country overall, with a vast and diversified natural resource base and a growing population represents a strong potential for the Bank’s growth aspiration.
“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.
“The prospective operation is expected to contribute strongly to the Bank’s overall growth path and financial results over the long-term.
The Transaction “will be consummated at 1.0x tangible book value less pre-agreed adjustments to be determined by a customary completion audit. 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.”
Commenting on the transaction, Dr. Herbert Wigwe – Group Chief Executive Officer of the Corporation, said: “At Access, our vision remains clear as ever and our determination to harness accretive opportunities within and outside Nigeria is our 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.
“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.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.