Johannesburg, South Africa – Access Bank plc, a Nigerian-based financial powerhouse, has agreed to purchase Bidvest Bank Holdings Limited from Bidvest Group for R2.8 billion. This marks a major shift in the ownership of the South African bank as Bidvest continues its strategic realignment.
The deal, subject to regulatory approvals, is expected to close within six months. Bidvest will provide support to ensure the bank remains financially sound and operationally stable throughout the transition.
Access Bank operates in 23 countries across three continents, serving over 60 million customers through a network of 700 branches. The institution combines retail banking services, a robust digital platform, and corporate banking expertise, with its shareholders’ equity exceeding $1.7 billion as of December 2023.
The bank has been active in South Africa since 2021 following its acquisition of Grobank Limited. Its expansion strategy focuses on becoming the leading gateway to Africa. Plans include introducing Broad-Based Black Economic Empowerment (B-BBEE) ownership initiatives, such as an Employee Stock Ownership Plan.
Bidvest stated that proceeds from the sale will be used to settle existing debt. For FY24, Bidvest Bank generated R371 million in trading profit and R377 million in operating income. Its financial assets, including leased assets, loans, and advances, totaled R6 billion, supported by R8 billion in deposits.
Other Divestments
Bidvest also announced the sale of FinGlobal to Momentum Group, citing complementary capabilities that will enhance services for South African expatriates. All employees will be retained as part of the transaction.
Additionally, the company has received binding offers from life insurers for 100% of Bidvest Life. A final decision on the buyer is expected soon.
Bidvest confirmed that Bidvest Bank, FinGlobal, and Bidvest Life will be listed as a Disposal Group held for sale in its financial statements for the fiscal year starting July 1, 2024.
