Access Bank, a subsidiary of Access Holdings, has signed a binding agreement to acquire an entire equity stake in South Africa’s Bidvest Bank from Bidvest Group in a deal worth nearly ZAR2.8bn ($157m).
Through the proposed deal, Access Bank aims to bolster its footprint in South Africa. The transaction is in line with the Nigeria-based bank’s expansion strategy, further cementing its position as Africa’s gateway to global markets.
Established in 2000, Bidvest Bank offers a broad array of financial services, including corporate, business, and retail banking solutions. Bidvest Bank’s portfolio includes leased assets, loans, and advances.
For the financial year ended in June 2024, the bank reported total assets of $665m and an audited profit before tax of $20m.
Bidvest Group CEO Mpumi Madisa said: “As a well-respected, experienced, and prominent financial services entity, I am pleased that Access Bank meets our objectives and provides reassurance for the continued sustainability and prosperity of the bank.
“It will enable the bank to advance, scale, and sustainably grow in today’s fast-changing, technology-driven, and highly competitive sector.”
Following the closing of the deal, Bidvest Bank will be merged with Access Bank’s existing South African operations.
The integration is anticipated to create a robust platform to drive regional growth in the Southern African Development Community (SADC) region.
The combined bank will make use of Bidvest Bank’s robust local capabilities and Access Bank’s pan-African presence. This will help the new entity with increased capacity for intra- and inter-Africa trade.
Access Bank also plans to introduce broad-based black economic empowerment ownership initiatives, including an employee stock ownership plan, as part of the transition.
Access Bank managing director and CEO Roosevelt Ogbonna said: “This acquisition supports our ambition to expand across Africa and solidify our 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.”
Bidvest Group has assured financial and operational stability for Bidvest Bank throughout the disposal process.
Proceeds from the sale will be used to settle existing Bidvest debt, reducing its net debt-to-EBITDA ratio to 1.6x from 1.7x as of June 2024, said the South African bank.
Subject to regulatory approvals, the transaction is expected to be completed in the second half of 2025.
In a related development, Bidvest Group has also finalised an agreement to sell FinGlobal, a provider of financial emigration solutions, to Momentum Group.
