The transaction will see Access Bank-the subsidiary- inject funds into Finance Trust Bank to boost its capital base.
Nigeria’s Access Holdings will acquire a 80 percent stake in Uganda's Finance Trust Bank Ltd in a transaction that will be closed in the first half of this year.
Access Holdings Plc is a Nigeria-based financial holding company with operations in various business segments including banking, consumer lending, payment services, insurance brokerage and pension fund administration.
The transaction will see Access Bank -the subsidiary- inject funds into Finance Trust Bank to boost its capital base, which will help promote financial inclusion and product diversification.
"Access Holdings Plc is pleased to announce that its flagship subsidiary, Access Bank Plc, has entered into a definitive agreement with the Ugandan-based Finance Trust Bank Ltd (FTB) and its selling institutional shareholders for the acquisition of a majority equity stake in FTB," said Access Holdings in a public notice. "Following the conclusion of customary conditions precedent and the anticipated closing of the transaction targeted for the first half of 2024, Access Bank would own an estimated 80 per cent shareholding in FTB."
The two banks will bring together their technological capacities, providing FTB's customers with access to diversified digital platforms to transact and get banking services while leveraging Access's expertise to tap into revenue opportunities.
Dr Herbert Wigwe, Acces Holdings group CEO, said the acquisition will help build a strong franchise in the continent with the expansion to Uganda supporting their aspiration to become Africa's Payment Gateway to the World.
"The Transaction marks an important milestone for Access Bank as it moves us closer to the achievement of our five-year strategic plan through continued expansion into key markets."
Annet Nakawunde Mulindwa, Finance Trust Bank managing director said the deal “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," she said.
Access Bank has more than 700 branches and service outlets in three continents. The Group operates in 20 countries and has over 65 million customers.
FTB runs 35 branches serving over 500,000 savers and 42,000 borrowers with over 40 percent of these being women.