Access Holdings Plc, on Thursday announced through the Nigerian Exchange Limited that Access Bank Plc, its 24-year old banking subsidiary, has agreed with South Africa’s Bidvest Group Limited to acquire a 100% stake in its Bidvest Bank Limited.
Although the statement to NGX was silent on the cost implication, other news sites quoting Bidvest Group’s Chief Executive, Mpumi Madisa put the purchase price at R2.8 billion (US$157.864m).
According to the statement by Access Holdings, the agreement reflects a commitment to strengthening its footprint in South Africa and consolidating on its position as Africa’s gateway to global markets, while seeking to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank is bringing to the Access bank’s existing South African subsidiary, a balance sheet with total assets of US$665m, and audited profit before tax of US$20m as of its year-ended June 30, 2024, creating an enlarged platform, which it says will anchor its regional growth strategy.
The filing to the NGX by Sunday Ekwochi, Company Secretary of AccessCorp quoted Roosevelt Ogbonna, Managing Director/CEO of Access Bank Plc as assuring that the “acquisition supports our ambition to expand across Africa and solidify our presence in key markets, with South Africa being a top priority.”
According to him, “it underscores our commitment to establishing a more resilient, diversified, and sustainable business model that leverages technology to meet evolving customer needs.
“Bidvest Bank provides a unique opportunity to blend its strong local expertise with Access Bank’s robust trade and retail banking capabilities, creating a platform for long-term growth and value creation,” he added.
Also commenting, Madisa expressed belief that being a well respected, experienced and prominent financial services entity, “Access bank our objectives and provides reassurance for the continued sustainability and prospecrity of the bank.
“It will enable the bank to advance, scale and sustainably grow in today’s fast-changing, technology-driven, and highly competitive sector,” he stressed further.
The transaction, Ekwochi added, aligns with Access Bank’s expansion objective to build the scale needed to become a major player in its market, adding that leveraging Bidvest Bank’s robust local strength and Access bank’s established pan-Africa presence, the new Access Bank will parade increased capability for intra and inter-African trade, linking businesses and creating new opportunities for regional integration.
Access Bank began its South African operation in 2021 with the acquisition of Grobank Limited, following which it has expanded to align with the vision of becoming Africa’s gateway to the world, and the world’s most respected African bank.
Madisa pledged that Bidvest Group will continue supporting Bidvest Bank until the sale process is complete by honouring its “responsibility to ensure that the business remains financially sound and operationally stable during the transition period, keeping the relevant regulators and relevant stakeholders informed throughout the process.”
The sale of Bidvest Bank, according to Bidvest Group, forms part of the broader restructuring of its Financial Services division, which has also resulted in agreements now signed for the sale of the FinGlobal and Bidvest Life businesses.
Bidvest Group has agreed to dispose of 100% of FinGlobal to Momentum Group, while there are binding offers from existing life insurers for Bidvest Life, one of which should advance to an agreement in the coming weeks.
Investdata News recalls that on Tuesday, December 10, 2024, AccessCorp also announced the foray into Malta with Access Bank UK Limited establishing its first fully owned subsidiary in the country.
The licence application for Access Bank Malta Limited, Ekwochi explained was approved by both the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA), in what it says signals a significant step in enhancing trade connectivity between Europe and Africa.
The Access Bank Malta Limited, the statement noted, serves as a gateway between the two continents, as it is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnership, Ekwochi added.
For Ogbonna, the Malta subsidiary will offer Access Bank “a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s gateway to the world. It further enhances our bank’s capability to support clients with innovative solutions tailored to cross-border trade and investment opportunities.”
On his part, Jamie Simmonds, founding CEO and MD of Access Bank UK said “Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continent Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” he noted.
