Access Holdings Plc, the holding company of Access Bank Pl, has announced its planned acquisition of a majority equity stake of 51 percent in Finibanco, an Angolan Bank.

Sunday Ekwochi, the company secretary, made this known in a corporate filing on the Nigerian Exchange Limited (NGX) on Tuesday.

Finibanco is a full-service commercial bank with over 20 branches and around $300 million in total assets in Angola.

Ekwochi said that the transaction would be effected through the purchase of existing shares owned by Montepio — the holding company for Banco Montepio, one of Portugal’s well-established commercial banks.

According to him, the Angolan market is the sixth largest economy in Africa and the seventh largest country overall, with a vast and diversified natural resource base and a growing population representing a strong potential for the bank’s growth aspiration.

“The transaction furthers the bank’s strategy to be Africa’s payment gateway to the world whilst working with other Africa-focused multilateral to provide robust and efficient payment platforms and ecosystems to serve the continent,” the statement adds.

“The prospective operation is expected to contribute strongly to the bank’s overall growth path and financial results over the long-term.

“The transaction, which is subject to regulatory approvals in Nigeria and Angola is expected to close in the first half of 2023 following fulfilment of customary conditions precedents.

“It will be consummated at 1.0x tangible book value less pre-agreed adjustments to be determined by a customary completion audit.

“Upon completion of the transaction, the bank is expected to increase its shareholding in Finibanco S.A and has reached certain conditional agreements in this regard.”

Herbert Wigwe, group chief executive officer of the corporation, said, “At Access, our vision remains clear as ever, and our determination to harness accretive opportunities within and outside Nigeria is our core strategic focus.

“Angola represents an opportunity for our shareholders to participate in what we believe will engender stronger value upside as Africa fully emerges.

“We remain committed to making these disciplined and well-structured investments towards creating a strong, holistic platform that will be competitive, diversified, and compelling for years to come.”

Ekwochi added the company would continue to update the market on the transaction in line with its disclosure obligations.