Botswana: Access Bank Reduces Stake in Botswana Subsidiary to Meet Regulatory Requirements

In a strategic move to comply with Botswana Stock Exchange (BSE) regulations, Access Bank Plc has reduced its stake in its Botswana subsidiary. As of late June, the bank’s ownership in the subsidiary decreased from 78.15% to 70%, aligning with the BSE’s mandate that requires listed companies to have at least 30% of their shares publicly traded.

From June 27 to 28, Access Bank Plc sold 59 million shares, totaling P116 million ($8.6 million). This transaction brings the subsidiary’s free float in line with the BSE’s listing requirements, which were implemented to enhance trading and liquidity on the exchange.

Sheperd Aisam, Managing Director of Access Bank Botswana, stated, “This divestment is a significant step towards meeting BSE compliance standards. It not only aligns us with regulatory expectations but also opens up opportunities for market growth and introduces new shareholders to our investment story.”

The BSE had raised the minimum free float requirement from 20% to 30% in January 2019 to improve market dynamics. This policy change led to the delisting of several firms, including retail chain Funmart, amid concerns about its impact on smaller companies.

Access Bank first listed on the BSE in December 2018, following its acquisition of a 78.15% stake in ABC Holdings’ Botswana subsidiary, known as BancABC, for P1.07 billion ($79 million).