Uganda: Access Bank to Acquire 80% Stake in Ugandan Finance Trust Bank

Access Bank, a flagship subsidiary of Access Holdings Plc, has initiated a transaction to acquire a majority equity stake, approximately 80%, in Uganda-based Finance Trust Bank Limited (FTB). The announcement came through a statement filed with the Nigerian Exchange Limited on Wednesday, and the proposed acquisition is contingent upon regulatory approval.

Access Holdings has been actively expanding its business segments, recently acquiring an insurance brokerage firm, Megatech Insurance Brokers Ltd, and introducing a consumer lending subsidiary named Oxygen X Finance Company Limited to provide digital lending solutions.

As part of this latest move, Access Bank aims to acquire a substantial stake from existing shareholders and inject capital to bolster FTB’s capital base. The entire transaction is subject to regulatory approvals from the Central Bank of Nigeria and the Bank of Uganda. Following the fulfillment of customary conditions and the expected closure of the transaction in the first half of 2024, Access Bank will hold an estimated 80% shareholding in FTB.

Dr. Herbert Wigwe, Group Chief Executive of Access Holdings, commented on the transaction, stating, “The Transaction marks an important milestone for Access Bank as it moves us closer to the achievement of our five-year strategic plan through continued expansion into key markets. We are building a strong and sustainable franchise to support economic prosperity, encourage Africa trade, advance financial inclusion thereby empowering many to achieve their financial dreams. The expansion to Uganda will support the realization of our aspiration to become Africa’s Payment Gateway to the World.”

Roosevelt Ogbonna, Managing Director of Access Bank Plc, emphasized the strategic significance of the transaction, especially in the context of East Africa’s key trade corridors. With Uganda playing a pivotal role in the region’s trade flows, Access Bank aims to leverage its financial solutions to deliver value and support FTB’s mission to provide innovative financial solutions, particularly for women, who currently make up about 40% of FTB’s customer base.

Access Holdings has seen increased investor interest, propelling it into the N1tn market capitalization club this year, aligning with heightened demand for banking stocks ahead of the corporate earning season.