By 
Access Bank, a subsidiary of Access Holdings, has announced its intention to acquire a majority stake in Finance Trust Bank (FTB), a Uganda-based financial institution. This development was disclosed in a notice to the Nigerian Exchange Limited and the investment public by Access Holdings.
The transaction involves Access Bank acquiring a majority stake from existing shareholders of FTB and a simultaneous capital injection by Access Bank to augment FTB’s capital base. Both aspects of the transaction are subject to regulatory approvals from the Central Bank of Nigeria and the Bank of Uganda.
Upon the successful conclusion of customary conditions precedent, and with the expected closing of the transaction in the first half of 2024, Access Bank is poised to hold an estimated 80% shareholding in FTB.
This strategic move comes at a crucial time for Ugandan commercial banks, which are facing challenges in meeting new minimum capital requirements set at $40.7 million by the end of December 2024.
Dr. Herbert Wigwe, the Group Chief Executive of Access Holdings, commented on the significance of the transaction, stating, “The acquisition is a pivotal milestone for Access Bank, aligning with our five-year strategic plan and reinforcing our commitment to expanding into key markets. Our objective is to build a robust and sustainable franchise that supports economic prosperity, fosters African trade, and promotes financial inclusion, empowering individuals to realize their financial aspirations. Expanding into Uganda will contribute to our vision of becoming Africa’s payment gateway to the world.”
Annet Nakawunde Mulindwa, the Managing Director of FTB, expressed optimism about the alliance, emphasizing that it will strengthen their position in the financial landscape and enable them to offer a more extensive range of innovative products and services to their customers.
Comments