Access Holdings Plc has announced that its banking subsidiary, The Access Bank UK Limited, has entered into a binding agreement to acquire a majority equity stake in Afrasia Bank Limited, the Republic of Mauritius’ fourth-largest bank by total assets.
The announcement was detailed in a disclosure statement published on the Nigerian Exchange (NGX) platform and signed by the company’s secretary, Sunday Ekwochi, on November 14, 2024.
According to the disclosure, the transaction represents a transformational step forward for Access UK and the overall Access Holdings’ banking franchise, leveraging the robust financial services sector of Mauritius.
The disclosure states:
“Mauritius, renowned for its robust financial services sector, which contributes 13.4% to its gross domestic product, provides Access UK with a solid foundation to expand its operations in the high-growth personal and corporate banking segments.”
In continuation:
“Furthermore, Access Bank will utilize Mauritius as a strategic hub for trade finance and regional connectivity, thereby enhancing its capacity to facilitate cross-border transactions across Africa and beyond.”
Afrasia Bank, at the end of its fiscal year on June 30, 2024, recorded total assets exceeding US$5.7 billion and a net profit after tax of US$152.4 million.
Comments from key Executives
Commenting on the acquisition, Roosevelt Ogbonna, Managing Director/CEO of Access Bank Plc and the CEO of the Banking Group, stated that the acquisition marks a pivotal moment in the company’s African growth strategy.
“This acquisition marks a pivotal moment in our African growth strategy, reinforcing our position as a leading Pan-African financial institution.”
He further described Mauritius as an international financial hub, stating that through Afrasia Bank, the Holdings will drive trade, support businesses, and promote economic inclusion across the region while continuing its mission to become the World’s Most Respected African Bank.
Jamie Simmonds, Managing Director of Access Bank UK, added:
“With a strong balance sheet and a well-established brand in Mauritius, Afrasia Bank provides us with a sustainable platform to scale and achieve long-term profitability.”
Simmonds stated that the deal supports the company’s strategy to diversify and secure future earnings while offering tailored solutions for clients to access global markets with ease.
Access Holding acquisitions this year
In 2024, Access Holdings expanded its footprint through strategic acquisitions, including an 80% stake in Uganda’s Finance Trust Bank, the full acquisition of National Bank of Kenya, and the purchase of African Banking Corporation of Tanzania, now Access Bank Tanzania.
- The company also merged with ARM Pensions Managers to form Access ARM Pensions, one of Nigeria’s largest pension administrators.
- Access Holdings is Nigeria’s largest financial services company by total assets as the bank continues to expand via strategic mergers and acquisitions. Despite this, investors struggle to reflect the company’s size in its market capitalization keeping it below $1 billion in value and one of the least of the FUGAZ.
- However, the company’s share price has surged past its rights issue price gaining over 35% to trade at around N24.75 as of the market opening on November 13, 2024.
