ACCESS Holdings Plc, trading as Access Corporation, has announced that its wholly owned subsidiary, Access Bank Plc, has entered into a binding agreement with Montepio Holding SGPS S.A to acquire a 51 per cent majority shareholding in Finibanco Angola S.A.
Finibanco Angola S.A. (“Finibanco”) is a profitable, well-capitalised full-service commercial bank with over 20 branches and around $300 million in total assets that has operated in Angola since 2008.
According to the group, 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.
The Angolan market, as the sixth largest economy in Africa and the seventh largest country overall, with a vast and diversified natural resource base and a growing population, represents a strong potential for the bank’s growth aspirations.
This 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.
Subject to regulatory approvals in Nigeria and Angola, the transaction is expected to close in the first half of 2023 following fulfilment of customary conditions precedents.
Details of the deal show that it would 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 S.A and has reached certain conditional agreements in this regard.
Commenting on the transaction, Dr Herbert Wigwe, Group Chief Executive Officer of the Corporation, 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.”
The Corporation shall continue to update the market on the Transaction in line with its disclosure obligations it stated.
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