Nigeria’s Access Holdings Plc has announced its plans to acquire an 80% stake in Uganda’s Finance Trust Bank Ltd. The transaction, set to be concluded in the first half of this year, is expected to bring about transformative changes in the banking sector of both nations.
Access Holdings Plc, a renowned Nigeria-based financial holding company, operates across various business segments, including banking, consumer lending, payment services, insurance brokerage, and pension fund administration. The subsidiary involved in this acquisition, Access Bank Plc, will inject funds into Finance Trust Bank, thereby fortifying its capital base. This infusion of capital aims to facilitate financial inclusion and product diversification, aligning with the broader goal of fostering economic growth.
Access Holdings expressed its enthusiasm in a public notice, stating, “Following the conclusion of customary conditions precedent and the anticipated closing of the transaction targeted for the first half of 2024, Access Bank would own an estimated 80 percent shareholding in FTB.”
The strategic alliance between the two banks will not only lead to a cross-pollination of technological capabilities but will also provide Finance Trust Bank’s customers access to diversified digital platforms for seamless transactions and banking services. Access Bank, with its expertise, aims to tap into revenue opportunities while contributing to the growth of Uganda’s banking sector.
Dr. Herbert Wigwe, CEO of Access Holdings, sees the acquisition as a crucial step towards building a robust franchise in Africa. He stated, “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.”
Annet Nakawunde Mulindwa, Managing Director of Finance Trust Bank, emphasized the significance of the deal for their growth journey. She stated, “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.”
Access Bank, with over 700 branches and service outlets on three continents and operations in 20 countries, boasts a customer base exceeding 65 million. On the other hand, Finance Trust Bank operates 35 branches, serving over 500,000 savers and 42,000 borrowers, with a noteworthy emphasis on empowering women, constituting over 40 percent of their clientele. The impending acquisition marks a pivotal moment for both institutions, heralding a new era of collaboration and growth in the African financial sector.
