Bidvest is to dispose of Bidvest Bank Holdings to Access Bank Plc for about R2.8bn, it said on Thursday.
The proceeds from the disposal will be used to settle existing debt, the group said in a statement on Thursday.
“Bidvest will continue to support Bidvest Bank to ensure that it remains financially sound and operationally stable throughout the disposal process,” it said.
Access Bank, which has been operating in SA since 2021 following its acquisition of Grobank, is a full-service commercial bank with over 60-million customers globally, serviced through a network of more than 700 branches in 23 countries across three continents.
It has a strong presence in Nigeria, 16 subsidiaries in Africa, the UK and representative offices in China, Hong Kong, the United Arab Emirates, India and France.
Bidvest sells Bidvest Bank for R2.8bn
Access Bank, which has been operating in SA since 2021, is to acquire Bidvest Bank
Bidvest is to dispose of Bidvest Bank Holdings to Access Bank Plc for about R2.8bn, it said on Thursday.
The proceeds from the disposal will be used to settle existing debt, the group said in a statement on Thursday.
“Bidvest will continue to support Bidvest Bank to ensure that it remains financially sound and operationally stable throughout the disposal process,” it said.
Access Bank, which has been operating in SA since 2021 following its acquisition of Grobank, is a full-service commercial bank with over 60-million customers globally, serviced through a network of more than 700 branches in 23 countries across three continents.
It has a strong presence in Nigeria, 16 subsidiaries in Africa, the UK and representative offices in China, Hong Kong, the United Arab Emirates, India and France.
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Access Bank intends to introduce B-BBEE ownership, including an employee stock ownership plan, according to Thursday's statement.
In the 2024 financial year, Bidvest Bank generated trading profit and operating income of R371m and R377m respectively. The Bidvest Bank book, which consists mainly of leased assets, loans and advances, totalled R6bn, which is mainly funded by deposits of R8bn.
All the conditions to the transaction relate to the required regulatory approvals and Bidvest’s management expects these will take six months, implying an expected effective date before the end of the current financial year.
Bidvest has also concluded an agreement to dispose of 100% of FinGlobal to Momentum Group. All employees will be retained as part of the transaction.
Bidvest is also in possession of binding offers from existing life insurers for 100% of Bidvest Life. One of these offers will be advanced to an agreement in the coming weeks, it said.
Bidvest Bank, FinGlobal and Bidvest Life will be disclosed as a disposal group held for sale in the consolidated Bidvest financial statements for the financial year which commenced on July 1 2024.
MackenzieJ@arena.africa
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