Access Bank to acquire full stake in S’Africa’s Bidvest Bank

• Published On: 12 December 2024 at 19:57

Access Holdings announced that its banking subsidiary, Access Bank Plc, has entered into a binding agreement with South Africa's Bidvest Group Limited to acquire a 100% equity stake in Bidvest Bank Limited.

Sunday Ekwochi, the secretary of Access Holdings, disclosed this in a corporate filing with the Nigerian Exchange Limited on Thursday.

Access Holdings stated that the acquisition is expected to close in the second half of 2025, subject to regulatory approvals.

"This agreement reflects the Bank's commitment to strengthening its footprint in South Africa and consolidating on its position as the continent's gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies," according to the announcement.

"Bidvest Bank, founded in 2000, is a niche and profitable South African financial institution that offers a wide range of services, including corporate and business banking solutions as well as diverse retail banking products.

"In its fiscal year ending June 2024, Bidvest Bank reported total assets of $665 million and an audited profit before tax of $20 million.

"Upon conclusion of this acquisition, Bidvest Bank will be merged with the Bank's existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region."

Roosevelt Ogbonna, managing director and CEO of Access Bank, stated that the acquisition aligns with the company's goal of expanding across Africa and strengthening its presence in key markets, with South Africa being a top priority.

"It underscores our commitment to establishing a more resilient, diversified, and sustainable business model that leverages technology to meet evolving customer needs," Ogbonna told reporters. "Bidvest Bank provides a unique opportunity to blend its strong local expertise with Access Bank's robust trade and retail banking capabilities, creating a platform for long-term growth and value creation."

Mpumi Madisa, CEO of Bidvest Group, expressed his satisfaction that Access Bank aligns with the South African company's objectives and provides reassurance for Bidvest Bank's long-term success.

"The transaction aligns with Access Bank's expansion objective to build the scale needed to become a major player in its market," Madisa told investors.

"By leveraging Bidvest Bank's robust local capabilities and Access Bank's established pan-African presence, the Bank will have increased capacity for intra- and inter-Africa trade, connecting businesses and creating new opportunities for regional integration."

Madisa stated that the transaction will allow the bank to advance, scale, and grow sustainably in today's fast-changing, technologically driven, and highly competitive industry.