By Dipo Olowookere
A Nigerian lender, Access Bank Plc, wants to acquire about 80 per cent equity stake in Uganda’s Finance Trust Bank (FTB) as part of its expansion drive.
Access Bank, which is one of the biggest banks in Nigeria, will purchase the shares held by FTB’s institutional shareholders who have sought to exit to a strategic and long-term shareholder.
However, the transaction, which is anticipated to conclude in the first half of 2024, is subject to regulatory approvals by the Central Bank of Nigeria and Bank of Uganda.
In a statement on Wednesday, January 17, 2024, Access Bank said it has already signed a “definitive agreement” for its “equity investment into FTB.”
“The prospective acquisition of majority equity stake in Finance Trust Bank marks an important milestone for Access Bank as we strengthen our regional presence in the East African Community trade region.
“This also moves us closer to realising our five-year strategic plan through continued expansion to achieve scaled benefits across key African markets.
“Beyond our expansion goals, this deal will enable the bank to deepen its community and women impact initiatives, as we will be building on FTB’s mission to effectively deliver innovative financial solutions to customers and stakeholders, especially women.
“Our storied history and experience in gender initiatives and women empowerment will greatly benefit FTB’s current deposit and loan portfolio – which currently comprises about 40 per cent women – and the larger Ugandan community,” the chief executive of Access Bank, Mr Roosevelt Ogbonna.
His counterpart at FTB, Mrs Annet Nakawunde Mulindwa, while also commenting on the deal, said, “Finance Trust Bank is thrilled to announce this transformative partnership with Access Bank Plc, as it marks a pivotal moment in our growth journey and presents an extraordinary opportunity for our valued customers and stakeholders.
“This strategic alliance will fortify our position in the financial landscape and enable us to offer our customers a broader array of innovative products and services.
“As we embark on this journey, we extend our heartfelt appreciation to our loyal customers, dedicated employees, and valued shareholders for their unwavering support.
“Leveraging Access Bank’s global presence and expertise, we look forward to reaching new heights and continuing to serve as a trusted financial partner to our customers and communities across Uganda.”
