Access Holdings’ Plc has entered into a binding agreement to acquire a 100% equity stake in South Africa’s Bidvest Bank Ltd in a $159 million (2.8 million rand) acquisition deal. The announcement was made by Sunday Ekwochi, the Holdings’ secretary during the corporate filing on the Nigerian Exchange Limited (NGX) on Thursday.
Bidvest Bank Ltd was established in 2000 and has operated as a profitable financial institution, providing corporate and business banking solutions with its range of retail banking services in South Africa. For its year ended June 2024, it reported a total assets equivalent of $665 million and an audited profit before tax of $20 million.
Commenting on the significance of the acquisition, Access Bank’s Managing Director and CEO, Ogbonna Roosevelt FCA, CFA, noted that the deal is a further testament to the bank’s resolve to strengthen its presence in key African markets. “It underscores our commitment to establishing a more resilient, diversified, and sustainable business model that leverages technology to meet evolving customer needs,” the CEO continued.
“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.” noted the CEO.
In the same vein, Mpumi Madisa, Chief Executive Officer of Bidvest Group has shown optimism in the acquisition deal. He noted that Access Bank Plc’s reputation and experience will be instrumental in the bank’s sustainability and overall growth.
“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,” stated Madisa.
This latest announcement from Access Holdings comes off the heels of an expansion and acquisition spree. It got a license to expand to Malta through Access Bank UK Limited on Tuesday, 10th December, 2024.
Again in November, Access Holdings Plc acquired Standard Chartered subsidiaries in Sierra Leone and Angola in a move to further solidify its influence in Africa. In the same month, Access Bank UK also announced a new Hong Kong branch.
The acquisition deal is projected to be complete by the second half of 20205, after which Bidvest Bank will be fully integrated into Access Bank South Africa Ltd.