Access Bank Plc has entered into an agreement to acquire the majority shares currently held by institutional shareholders of Uganda’s Finance Trust Bank (FTB), who are seeking to exit and welcome a strategic, long-term shareholder.
The transaction, pending regulatory approvals from the Central Bank of Nigeria (CBN) and Bank of Uganda, is anticipated to conclude in the first half of 2024, subject to the fulfillment of customary conditions precedent. Following the completion of the deal, Access Bank is poised to hold an estimated 80% shareholding in FTB.
Roosevelt Ogbonna, Managing Director of Access Bank Plc, commented on the transaction, stating, “The prospective acquisition of a majority equity stake in Finance Trust Bank marks an important milestone for Access Bank as we strengthen our regional presence in the East African Community trade region. This also moves us closer to realizing our five-year strategic plan through continued expansion to achieve scaled benefits across key African markets.”
Ogbonna added, “Beyond our expansion goals, this deal will enable the Bank to deepen its community and women impact initiatives, as we will be building on FTB’s mission to effectively deliver innovative financial solutions to customers and stakeholders, especially women.”
Managing Director of Finance Trust Bank, Annet Nakawunde Mulindwa, expressed excitement about the transformative partnership with Access Bank, calling it a pivotal moment in their growth journey. She stated, “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.”
Mulindwa further highlighted the potential benefits of the partnership, including leveraging Access Bank’s global presence and expertise, merging technological resources, and providing FTB customers with access to secure and diversified digital platforms for seamless transactions.
The transaction is expected to bring together the strengths of both banks, allowing for deeper sector relevance across various industries and tapping into revenue opportunities across new customer segments in business and retail banking.