Access Bank To Acquire Majority Stake In Grobank Limited

Access Bank has announced that it will acquire a majority stake in the lender, Grobank Limited after entering into a definitive agreement with GroCapital Holdings. The planned acquisition comes amidst a series of acquisitions made by Access Bank to expand its operation across Nigeria.

In a statement obtained by AllNews, Access Bank will purchase majority shares in Grobank Limited in two tranches. It was gathered that the first payment will see Access Bank take 49% of Grobank Limited's shares before the second payment will make the Nigerian lender the highest shareholder in Grobank.

Grobank is a South African bank that will further increase Access Bank's operation in the SADC region. Grobank Limited's shareholders include Public Investment Corporation and Fairfax Africa Holdings, which will retain an existing but diluted shareholding in Grobank.

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The proposed acquisition is still subject to various regulatory approvals and the overall transaction subject to Grobank's shareholder approvals. If the acquisition is approved, it will "enable Access Bank to consolidate its Southern African and broader African footprint." This will help the company meet multi-national clients.

What Access Bank CEO Said About Acquisition

While speaking about the acquisition, Access Bank Chief Executive Officer, Herbert Wigwe, said, "We have consistently said that we are focused on building the scale needed to become a leading African bank; one that leverages our experienced and growing talent base and key stakeholder partnerships towards driving sustainable impact and profitability. Today's announcement demonstrate further commeitment to delivering our strategic aspirations of becoming Africa's Gateway to the World in line with our vision to be the World's Most respected African Bank.

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"These transactions will significantly strengthen our presence in Southern Africa and further our footprint for growth in the SADC region. With a broader presence across the continent, Access Bank will be better placed to support our customers who are increasingly looking towards intra Africa growth. The proposed transactions will accelerate the Bank's momentum towards delivering world class banking services to an expected customer base across Africa. Our goal remains to reach and impact 100 million unique customers across the continent."