Access Bank Plc has entered into an agreement with Montepio Holding SGPS S.A to acquire 51 per cent majority shareholding in Finibanco Angola S.A., a leading Angolan bank.
In a regulatory filing yesterday at the Nigerian Exchange (NGX), Access Holdings Plc-the holding group for Access Bank, stated that the Transaction would be effected 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-capitalised full-service commercial bank with over 20 branches and around $300 million in total assets. It has operated in Angola since 2008.
The Angolan market is the 6th largest economy in Africa and the seventh largest country overall, with a vast and diversified natural resource base and a growing population.
The transaction, which is subject to regulatory approvals in Nigeria and Angola, is expected to close in the first half of next year, following fulfillment of customary conditions precedents. It will be consummated at 1.0 time tangible book value less pre-agreed adjustments to be determined by a customary completion audit.
Upon completion of the transaction, Access Bank is expected to increase its shareholding in Finibanco S.A and has reached certain conditional agreements in this regard.
Group Chief Executive Officer, Access Holdings Plc, Dr Herbert Wigwe, said the Angolan acquisition represents a strong potential for the bank’s growth aspiration.
According to him, the transaction furthers the bank’s strategy to be Africa’s payment gateway to the world while working with other Africa-focused multilaterals to provide robust and efficient payment platforms and ecosystems to serve the continent.
He noted that the prospective operation is expected to contribute strongly to the bank’s growth path and financial results over the long-term.
“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”, Wigwe said.
