Access Bank Plc has concluded an arrangement to buy over 78% of BancABC Botswana for an undisclosed cash amount of about 1.13 times the book value plus a two-year deferred payment.
The transaction, which was disclosed in a memo, is coming barely one month after the lender bought a South African bank.
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BancABC is Botswana’s fifth-largest bank, with a strong retail loan portfolio and plans to expand into corporate and small-to-medium-sized business lending.
Atlas Mara, a London-listed company, in a statement on Monday, said the Nigerian bank would buy just over 78% of BancABC Botswana for an undisclosed cash amount of about 1.13 times the book value plus a two-year deferred payment.
Access Bank now has a presence in ten African countries thanks to the agreement with ABC Holdings, a local subsidiary of Atlas Mara. It should be completed by the end of the second quarter.
According to a memo published on Tuesday, Access Bank, Nigeria’s largest lender, has agreed to buy a majority stake in the African Banking Corporation of Botswana for cash, only a month after buying a South African bank.
Herbert Wigwe, the Chief Executive Officer of Access Group, told the public that the company is focused on growth.
“We remain committed to a focused and deliberate expansion strategy in Africa, which we believe will generate solid, long-term returns.”
In March, Access Bank paid $60 million for a majority stake in South Africa’s Grobank, making it the first Nigerian bank to enter the country.
The bank also recently signed agreements in Zambia and Mozambique.
Access Bank is restructuring into a holding firm to drive its international growth with more than $16 billion in reserves and an emphasis on corporate and retail banking.