Access Bank has notified the investing public that it has entered into a definitive and binding agreement with ABC Holding Limited, a subsidiary of Atlas Mara Limited to acquire a 78.15% shareholding in African Banking Corporation of Botswana Limited (BancABC).
Botswana is renowned for its quality sovereign credit rating and stability. Access Bank’s market entry will enable it to further solidify its strategy as a strong banking partner in key verticals across retail and corporate banking, including especially supporting trade and payment across South Africa and Sub- Saharan Africa more broadly.
BancABC Botswana is the fifth largest Bank in Botswana and is a very well capitalized banking institution poised for growth and success in its local market. The bank has been perennially profitable, given an existing high quality retail loan book with opportunities and scope for diversification and further expansion into corporate and SME lending. Botswana’s achievement in digital banking adoption also provide an opportunity for Access Bank to optimize its best-in-class digital platforms and product suites to the benefit of BancABC Botswana’s customers.
Speaking on the acquisition, Herbert Wigwe, Group Managing Director of Access Bank stated thus:
“We remain committed to a disciplined and thoughtful expansion strategy in Africa, which we believe will create strong, sustainable returns to our shareholders and stakeholders at large over the medium and long term.
We are building a bank of the future that Africans across Africa and the world will be proud of, and look forward to welcoming the employees, customers and stakeholders of BancABC Botswana to Access Bank”
According to the circular released by Access Bank, the transaction which is subject to regulatory approvals and customary conditions is expected to close before the end of second quarter of 2021.