After the successful completion of a proposed merger with another bank in Zambia, Access Bank has expressed possibility of raising the value of its subsidiary in the country to $1 billion.
The lender announced Monday that it has executed a binding agreement with the Atlas Mara Limited on a proposed merger between African Banking Corporation Zambia Limited (Atlas Mara Limited) and Access Bank Zambia.
According to filing seen by Business Metrics, Access Bank said upon completion of this prospective transact, the Bank is expected to retain or increase its current shareholding in Access Bank Zambia, which following the merger will have over 70 branches and agencies, approximately $1 billion in total assets and over 300,000 customers in Zambia.
It further explained that the transaction will not require significant additional capital investment requirements from the Bank given that capital and other synergies created from the merger between Access Bank Zambia with Cavmont Bank in 2020.
Meanwhile, the proposed transaction is expected to be concluded in 2022, subject to fulfilment of conditions precedent including regulatory approvals in Nigeria and Zambia.
Commenting on the transaction, Dr. Herbert Wigwe, GMD/CEO of the Bank said: “This transaction represents another milestone that brings us closer to the achievement of our broader strategic objectives. The Merger of Atlaz Mara Zambia with Access Bank Zambia is expected to augment our presence in Zambia and the broader COMESA region, Africa’s largest free trade area.
“We are particularly excited by the prospects of increased earnings contribution to the Bank from the enlarged Access Bank Zambia, which has also announced the appointment of new Managing Director, Mr. Lishala Situmbeko, who brings over 25 years of cognate experience and deep local relationship into our Zambia operation.
“Today’s announcement is a statement t tye strong confidence of the Zambian market in the Bank’s country and regional strategy as well as our strong confidence in the long-term prospects for the Zambian economy.”
