Botswana based consumer lending company, Letshego Holdings Limited, have announced the successful acquisition of a 100 percent stake in FBN Microfinance Bank (FBN MfB) from its parent, FBN Holdings Plc.
Group Managing Director, Letshego, Chris Low, over the weekend, said that FBN MFB will soon change its name to Letshego MFB.
According to Low, “As the leading indigenous BSE-company by market capitalisation and profitability, it is an exciting time for us. This opportunity to enter the Nigerian market coincides with the expansion of our range of financially inclusive products and services. We believe Nigeria’s growth prospects in our targeted low-and-middle income and micro and small enterprises (MSEs).
Customer segments have significant upside potential and by bringing our skills to this market, we can further financial inclusion and improve lives across Nigeria. We look forward to being able to further improve lives across the continent through this development.”
Managing Director, FBN MfB, Mrs. Pauline Nsa, explained that FBN Holdings decided to sell its microfinance subsidiary in order to realign the focus of the group on its core businesses.
Last December, FBN Holdings Plc, wrote to the Nigerian Stock Exchange Confirming that it had obtained approval from the CBN to divest from FBN Microfinance Bank. It further informed the NSE of its decision to sell to Letshego Holdings Ltd.
FBN Microfinance Bank contributed 1.6% to the Group’s Gross Earnings in 2014. It reported a gross earnings and profit before tax of N1.3 billion and N283 million respectively for the period. The company has obtained board approval to dispose of the unit in 2014 and scheduled June 2015 for effective sale.
Letshego, is a holding company with consumer and micro lending subsidiaries across nine countries in Southern and East Africa including Botswana, Kenya, Lesotho, Mozambique, Namibia, Rwanda, Swaziland, Tanzania and Uganda.