By Audrey Lotechukwu
FRI 26 MARCH, 2021-theGBJournal- Access Bank Plc, Nigerian multinational bank, has received regulatory approval from both Nigerian and South African regulatory authorities to acquire South African-based Grobank Limited.
The definitive agreement to acquire Grobank Limited was reached in September 2020 with the bank’s Holding Company, GroCapital Holdings Limited after Access Bank agreed to invest up to R400 million (N10.1 billion) into the bank over the next two years.
The Investment by Access Bank will be made in two tranches with an initial cash consideration for a 49% shareholding, and a subsequent increase to majority equity stake.
Access Bank said today in a statement that the approvals constitute a significant milestone in the transaction that is expected to be completed in the second quarter of 2021 subject to the completion of other conditions precedent.
‘’Today’s announcement represents significant progress in delivering our strategic intent of becoming Africa’s gateway to the world in pursuit of our vision to be the World’s Most Respected Bank,’’ said Herbert Wigwe, GMD/CEO of Access Bank.
According to Access Bank, their presence in South Africa will no doubt accelerate the attainment of their goal of ‘’delivering our More Than Banking promise’’ to their 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,’’ the bank said.
Listed on the Nigerian Stock Exchange since 1998, Access Bank Plc currently operates through a network of more than 600 branches and service outlets, spanning three continents, 12 countries and 31 million customers.
Access Bank employs 28,000 people in its operations in Nigeria and has subsidiaries in Sub-Saharan Africa and the United Kingdom (with a branch in Dubai, UAE) and representative offices in China, Lebanon and India.
The Bank has over 900,000 shareholders, including several Nigerian and International Institutional Investors.