• Acquires 80% stake in Ugandan bank
Access Holdings Plc is establishing a new consumer lending subsidiary that aims at further expanding consumer finance options for individuals and businesses.
The new subsidiary, Oxygen X Finance Company Limited, is expected to commence operations soon upon obtaining final operating licence from the Central Bank of Nigeria (CBN). CBN had earlier granted approval-in-principle to the new subsidiary.
According to the company, the new subsidiary will impact the financial landscape by providing innovative and seamless digital lending solutions tailored to meet the needs of individuals and corporate customers.
The Nigerian expansion came as Access Bank Plc, the flagship subsidiary of Access Holdings, sealed a deal to acquire the majority equity stake of about 80 per cent in Uganda’s Finance Trust Bank (FTB).
The deal will see Access Bank concurrently acquiring the shares currently held by FTB’s Institutional Shareholders who have sought to exit to a strategic, long-term shareholder.
The transaction is, however, subject to regulatory approvals by the Central Bank of Nigeria and Bank of Uganda. It is expected to close in the first half of 2024, following the fulfilment of customary conditions precedent.
Following the anticipated closing of the transaction, Access Bank would own an estimated 80 per cent shareholding in FTB.
Group Chief Executive, Access Holdings Plc, Mr. Herbert Wigwe, said the transaction marked an important milestone for the bank as it moves closer to the achievement of the group’s 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,” Wigwe said.
According to him, the expansion to Uganda will support the realisation of the group’s aspiration to become Africa’s payment gateway to the world.
Managing Director, Access Bank Plc, Mr. Roosevelt Ogbonna said the prospective acquisition of majority equity stake in FTB would enable the bank to strengthen its regional presence in the East African Community trade region.
“Beyond our expansion goals, this deal will enable the bank to deepen its community and women impact initiatives, as we will be building on FTB’s mission to effectively deliver innovative financial solutions to customers and stakeholders, especially women. Our storied history and experience in gender initiatives and women empowerment will greatly benefit FTB’s current deposit and loan portfolio – which currently comprises about 40 per cent women – and the larger Ugandan community,” Ogbonna said.
According to him, the deal comes at a time when commercial banks in Uganda are looking to increase their capital, thus the strategic acquisition presents an opportunity for Access Bank to partner with FTB and its stakeholders to create more significant opportunities for financial inclusion, product diversification, and, ultimately, greater customer-centricity.
He noted that Access Bank’s presence in over 20 countries globally presents a robust platform that FTB’s customers can leverage to boost trade opportunities with the rest of the world.
Ogbonna assured that Access Bank remains steadfast in its commitment to driving sustainable growth and creating exceptional value for its stakeholders, noting that the acquisition of FTB stands as a testament to the bank’s unwavering dedication to expanding its footprint and supporting the economic progress across East Africa.
Managing Director, Finance Trust Bank, Annet Nakawunde Mulindwa, said the bank was thrilled with the partnership with Access Bank as it marked a pivotal moment in its growth journey and presented an extraordinary opportunity for customers and stakeholders.
“This strategic alliance will fortify our position in the financial landscape and enable us to offer our customers a broader array of innovative products and services.
“As we embark on this journey, we extend our heartfelt appreciation to our loyal customers, dedicated employees, and valued shareholders for their unwavering support. Leveraging Access Bank’s global presence and expertise, we look forward to reaching new heights and continuing to serve as a trusted financial partner to our customers and communities across Uganda,” Mulindwa said.
She noted that the transaction will enable both banks to merge their technological resources, providing FTB customers with access to secure and diversified digital platforms for seamless transactions and banking services provided by Access Bank.
According to her, FTB would be able to leverage Access Bank’s expertise in building deep sector relevance across several industries and tap into revenue opportunities across new customer segments which cut across business and retail banking.
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