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Nigeria's Access Bank to buy Atlas Mara's stake in BancABC

Published 19/04/2021, 13:48
Updated 19/04/2021, 13:54
© Reuters.

By Chijioke Ohuocha
ABUJA, April 19 (Reuters) - Nigeria's biggest lender Access
Bank ACCESS.LG said on Monday it has agreed to buy a majority
stake in African Banking Corporation of Botswana ABC.BT for
cash, a month after it acquired a South African bank.
Access Bank is expanding across Africa to counter
stagflation at home and dollar shortages that have frustrated
businesses.
The lender will acquire just over 78% of BancABC Botswana for
cash of around 1.13 times book value and a two-year deferred
payment, amounting to an undisclosed sum, Atlas Mara said in a
statement.
The latest acquisition from ABC Holdings, the local unit of
London-listed Atlas Mara ATMA.L , brings its African presence
to 10 countries. The deal is expected to close before the end of
the second quarter.
"We remain committed to a disciplined and thoughtful
expansion strategy in Africa, which we believe will create
strong, sustainable returns," Access Group Chief Executive
Herbert Wigwe said.
BancABC Botswana is the fifth largest bank in Botswana and
has a quality retail loan book with the scope for expansion into
corporate and small to medium-sized enterprise lending, Access
said.
Nigerian lenders have been seeking new avenues to boost
profit amid slow economic growth at home, a drop in government
bond yields and a rise in restructured loans due to the impact
of the pandemic.
In March Access Bank bought a controlling stake in South
Africa's Grobank for around $60 million, becoming first Nigerian
lender to venture into South Africa. It has also struck recent
deals in Zambia and Mozambique.

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