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Access Bank to acquire Ugandan based Finance Trust Bank

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In line with its continental expansion drive, Access Holdings says its subsidiary, Access Bank Plc, has reached a definitive agreement with the Ugandan-based Finance Trust Bank (FTB) for the acquisition of its majority equity stake.

The deal, which was announced in a notice filed to the Nigerian Exchange Limited, the investment public, will see Access Bank concurrently acquiring the shares currently held by FTB’s Institutional Shareholders who have sought to exit to a strategic, long-term shareholder.

The notice said the transaction is subject to regulatory approvals by the Central Bank of Nigeria and Bank of Uganda and is expected to close in the first half of 2024, following the fulfilment of customary conditions precedent.

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With the closing of the transaction, Access Bank would own an estimated 80% shareholding in FTB.

The holding company emphasized that coming at a time when commercial banks in Uganda are looking to increase their capital, the acquisition presents an opportunity for Access Bank to partner with FTB and its stakeholders to create more significant opportunities for financial inclusion, product diversification, and, ultimately, greater customer-centricity.

Access Bank’s presence in over 20 countries globally presents a robust platform that FTB’s customers can leverage to boost trade opportunities with the rest of the world.

Commenting on the Transaction, Roosevelt Ogbonna, Managing Director of Access Bank Plc said:

“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.

“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.

“Our storied history and experience in gender initiatives and women empowerment will greatly benefit FTB’s current deposit and loan portfolio – which currently comprises about 40% women – and the larger Ugandan community.”

Annet Nakawunde Mulindwa, Managing Director of Finance Trust Bank said: “Finance Trust Bank is thrilled to announce this transformative partnership with Access Bank PLC, as it marks a pivotal moment in our growth journey and presents an extraordinary opportunity for our valued customers and stakeholders.

“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.

“As we embark on this journey, we extend our heartfelt appreciation to our loyal customers, dedicated employees, and valued shareholders for their unwavering support.

Leveraging Access Bank’s global presence and expertise, we look forward to reaching new heights and continuing to serve as a trusted financial partner to our customers and communities across Uganda.”

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