Access Bank expands its African presence by purchasing a majority stake in Angolan financial house

NIGERIAN financial house Access Bank has expanded its presence into Angola with the acquisition of a 51% stake in local banking group Finibanco Angola following an agreement between the parent companies of both banks.

Under the terms of an agreement between Access Holdings and Montepio Holding announced on the floor of the Nigerian Exchange yesterday, the Access Bank will be buying out the stake of a Portuguese bank. Finibanco Angola is a profitable, well-capitalised full-service commercial bank that has operated in Angola since 2008, with over 20 branches and around $300m in total assets

Sunday Ekwochi, the secretary of Access Holdings, disclosed that the transaction would be effected via the purchase of existing shares owned by Montepio, the holding company for Banco Montepio, one of Portugal’s well-established commercial banks. He added that Angola is the sixth largest economy in Africa and the seventh largest country with a vast and diversified natural resource base and a growing population, offering strong potential for the bank’s growth aspirations.

Mr Ekwochi said:  “The transaction furthers the bank’s strategy to be Africa’s payment gateway to the world whilst working with other Africa-focused multilaterals to provide robust and efficient payment platforms and ecosystems to serve the continent. The prospective operation is expected to contribute strongly to the bank’s overall growth path and financial results over the long-term.

“The transaction, which is subject to regulatory approvals in Nigeria and Angola is expected to close in the first half of 2023 following fulfilment of customary conditions precedents. It will be consummated at 1.0x tangible book value less pre-agreed adjustments to be determined by a customary completion audit. Upon completion of the transaction, the bank is expected to increase its shareholding in Finibanco and has reached certain conditional agreements in this regard.”

Herbert Wigwe, Access Bank's chief executive, said: “At Access, our vision remains clear as ever and our determination to harness accretive opportunities within and outside Nigeria is our core strategic focus. Angola represents an opportunity for our shareholders to participate in what we believe will engender stronger value upside as Africa fully emerges.

“We remain committed to making these disciplined and well-structured investments towards creating a strong, holistic platform that will be competitive, diversified, and compelling for years to come.”