MON 19 APRIL, 2021-theGBJournal- Access Bank Plc, Nigeria’s biggest lender, has agreed to buy 78.15% stake in African Banking Corporation of Botswana (BancABC), Botswana’s fifth largest bank and a subsidiary of Atlas Mara Limited, sub-Saharan African financial services group.
The acquisition is for an undisclosed cash sum of about 1.13 times book value as well as a two-year deferred payment and according to a statement by Atlas Mara, ‘’the Transaction is subject to fulfillment of various customary conditions precedent including certain regulatory requirements and consents from other relevant authorities and certain counterparties.’’
Michael Wilkerson, Chairman of Atlas Mara, said, “The Transaction announced today is consistent with the objectives articulated by the Company as part of its previously-announced strategic review and overall debt restructuring.
‘’The pandemic-related economic slowdown in 2020 led to a broadening of the initially-announced strategic review and an acceleration of potential transaction discussions in-line with the Company’s objective of a comprehensive restructuring of the Company’s and ABCH’s balance sheets. This Transaction, like the previously announced transactions for Mozambique, Rwanda and Tanzania, is consistent with this strategy and will help realize value for the Group’s creditors and other stakeholders.’’
The news come barely amount after Access Bank splashed $60 million to acquire South Africa’s Grobank.
The latest acquisition means that the Bank now has presence in 10 African countries.