By Audrey Lotechukwu
…Commences operation in Mozambique and SA markets
TUE, 29 SEPT, 2020-theGBJournal- Access Bank Plc’s planned restructuring to a Holding Company (HoldCo) received a major boost today with the Central Bank of Nigeria (CBN) giving its nod to the proposal that will help accelerate the bank’s vision to becoming Africa’s gateway to the world.
The bank in a notification to the Nigerian Stock Exchange (NSE) said, the CBN gave the approval in-principle, and will communicate details regarding the HoldCo Structure to the market in due course.
Access Bank management said the proposed HoldCo structure would enable it further accelerate its objectives around business diversification, improved operational efficiencies, talent retention as well as robust governance.
The Bank also announced its foray into the Mozambique and the South African markets with definitive agreements. This is coming on the heels of its recent transaction with Cavmont Bank of Zambia. These transactions now solidly embed the Bank’s presence in the SADC region, one of Africa’s most important trading blocs.
‘’These transactions will result in a more connected African banking network that builds on Access Banks existing foundation and enhances its value proposition to stakeholders, including customers and employees,’’ the Bank said, and adding ‘’that shareholders will benefit from economies of scale of larger banking network, including the associated cost efficiencies arising from the Bank’s federated IT System and replication of investments in innovative products across a wider range of markets.
Meanwhile, the Bank said it has received regulatory approvals to commence operation in Mozambique under the name Access Bank Mozambique S.A. It also announced that the subsidiary, Access Bank Mozambique S.A, has entered into a definitive agreement with ABC Holding Limited (ABC Holding), a wholly owned subsidiary of Atlas Mara Limited to acquire African Banking Corporation (Mocambique) S.A. for cash in a combination of ”definitive and contingent consideration.” The transaction will be funded by the capital invested by the bank in Access Bank Mozambique and will result in the Access Bank Mozambique becoming the 7th largest bank in the country.
’’As an enlarged business, Access Bank Mozambique will have an enhanced capacity to play a more impactful role in the growth of the Mozambican economy, particularly in the emerging oil and gas sector, an industry Access Bank has deep experience in.’’ the Bank said.