Access Bank Plc has reached an agreement with Atlas Mara to acquire a majority stake in African Banking Corporation in Botswana, sources familiar with the matter reported on Monday (April 19th). The amount of the transaction has not been disclosed, but the amount will include a deferred portion payable 24 months after the closing of this transaction. A final agreement is expected in the second quarter of the year, subject to regulatory approval from the relevant authorities.
Thus, Access Bank will acquire more than 78% of the shares of the Botswanan bank, held by Atlas Mara, a financial services group based in the British Virgin Islands. The agreement marks the second transaction between Atlas Mara and Nigeria’s largest bank, which agreed to buy its subsidiary in Mozambique in September 2020. “Access Bank will purchase a 78.15% stake in the bank’s capital in Botswana for a cash consideration which is approximately 1.13 times the book value, ”said Atlas Mara.
For its part, Access Bank said it was acquiring BancABC Botswana to “further consolidate” its retail and corporate banking services, as well as to support trade and payments across southern Africa.
As a reminder, the Lagos-based bank said it plans to expand into eight new African markets this year. This by setting up offices in certain countries, by partnering with existing banks in certain countries or by deploying digital platforms to provide services to customers.