Access Holdings Acquires Majority Stake in Afrasia Bank, Mauritius.

Access Holdings Plc has announced that its banking subsidiary, Access Bank UK Limited, has entered into a binding agreement to acquire a majority equity stake in Afrasia Bank Limited, the fourth-largest bank in Mauritius by total assets.

This announcement was made in a disclosure published on the Nigerian Exchange (NGX) platform, dated November 14, 2024, and signed by the company’s secretary, Sunday Ekwochi.

According to the disclosure, the transaction is a significant step forward for Access UK and the broader Access Holdings banking group. It will leverage Mauritius’s strong financial services sector to expand Access Bank’s reach. Mauritius, known for its dynamic financial services sector, contributes 13.4% to the country’s GDP, and will provide Access UK with a solid platform to grow its personal and corporate banking operations.

“Mauritius, with its established financial services sector, presents Access UK with an ideal opportunity to expand and strengthen our presence in the high-growth segments of personal and corporate banking,” the statement read.

The bank also plans to use Mauritius as a strategic hub for trade finance and regional connectivity, enhancing its ability to facilitate cross-border transactions throughout Africa and beyond.

As of the end of its fiscal year on June 30, 2024, Afrasia Bank reported total assets of over US$5.7 billion and a net profit after tax of US$152.4 million.

Executive Comments

Roosevelt Ogbonna, the Managing Director/CEO of Access Bank Plc and the CEO of Access Holdings, commented that the acquisition is a crucial step in the company’s African growth strategy.

“This acquisition represents a landmark moment in our African growth journey, reinforcing our position as a leading Pan-African financial institution,” Ogbonna said. He further emphasized that Mauritius is a key international financial hub, and through Afrasia Bank, Access Holdings will drive trade, support businesses, and promote economic inclusion across the region. He reiterated the company’s mission to become the world’s most respected African bank.

Jamie Simmonds, Managing Director of Access Bank UK, added, “With Afrasia Bank’s strong balance sheet and established brand in Mauritius, we now have a sustainable platform for scaling our operations and ensuring long-term profitability.” Simmonds noted that the acquisition supports the company’s strategy to diversify its business and secure future earnings, while also offering tailored solutions for clients looking to access global markets.

Access Holdings’ Recent Acquisitions

In 2024, Access Holdings has significantly expanded its footprint through a series of strategic acquisitions, including an 80% stake in Uganda’s Finance Trust Bank, the full acquisition of National Bank of Kenya, and the purchase of African Banking Corporation of Tanzania, now operating as Access Bank Tanzania. Additionally, Access Holdings merged with ARM Pensions Managers to form Access ARM Pensions, which is now one of Nigeria’s largest pension administrators.

As the largest financial services company in Nigeria by total assets, Access Holdings continues to expand through mergers and acquisitions. Despite this growth, the company’s market capitalization has not reflected its size, keeping it below $1 billion, which places it among the least valued of the FUGAZ (First Bank, UBA, Guarantee Trust Bank, Access Bank, and Zenith Bank) group.

However, Access Holdings’ share price has seen a significant boost, surging by over 35% to around N24.75 as of the market opening on November 13, 2024, surpassing the price set during its rights issue.