…gets regulatory approval to acquire South African Grobank Limited
Access Bank Plc is set to expand to South Africa after receiving regulatory approvals from both South Africa and Nigeria to go ahead with its proposed acquisition of South African-based Grobank Limited (Grobank).
The bank disclosed this in a statement signed by Sunday Ekwochi, Company Secretary, Access Bank Plc and released through the Nigerian Stock Exchange platform.
According to the leading financial institution, the approvals constitute a significant milestone in the transaction first proposed in September 2020 and now expected to be completed in the second quarter of 2021.
Speaking on the move, the GMD/CEO, Access Bank, Mr. Herbert Wigwe, said “Today’s announcement represents significant progress in delivering on our strategic intent of becoming Africa’s Gateway to the World in pursuit of our vision to be the world’s most respected African Bank.
“Our presence in South Africa will no doubt accelerate the attainment of our goal of delivering our More than Banking promise to 100 million unique customers across the continent. It will also build on our existing foundation and deliver enhanced value to our shareholders, employees, and other stakeholders.”
What you need to know
Access Bank to acquire the South African bank for about $60 million in the second quarter of this year after the bank fell into financial crisis.
Access Bank in a bid to acquire strategic aspiration to become Africa’s gateway to the world acquired Zambian-based Cavmont Bank Limited after key conditions were met in January 2021.
According to the GCR report, Grobank had a market capitalisation of USD15.1 billion in 2018 but fast forward to three years later, the company is being sold for 400 million South African rands. This will earn Access Bank a 49 per cent majority stake.
The bank also received regulatory approvals to start operations in Mozambique under the name Access Bank Mozambique, S.A. (Access Bank Mozambique).
The Mozambique branch entered into a definitive agreement with ABC Holdings Limited (“ABC Holdings”), a wholly-owned subsidiary of Atlas Mara Limited (“Atlas Mara”) to acquire African Banking Corporation (Moҫambique), S.A., (“BancABC Mozambique”) for cash, inclusive of contingent consideration.
CEO Herbert Wigwe in September 2020 said the bank that is focused on building the scale needed to become a leading African bank; one that leverages our experienced and growing talent base and key stakeholder partnerships towards driving sustainable impact and profitability.