Access Holdings, led by Nigerian banker Aigboje Aig-Imoukhuede, cuts stake in Botswana unit

Timilehin Adejumobi -

Key Points

  • Access Holdings has reduced its stake in Access Bank Botswana from 78.15% to 70% to meet Botswana Stock Exchange’s new 30% free float requirement
  • The sale of 59 million shares for BWP116 million ($8.6 million) aims to comply with BSE rules and boost market dynamics.
  • Access Bank, with a global presence in 22 markets and over 700 branches, continues expanding across Africa and Europe, with a $229 million capital raise.

Access Holdings, a prominent financial services group led by Nigerian banker Aigboje Aig-Imoukhuede, has reduced its stake in Access Bank Botswana to comply with the Botswana Stock Exchange’s (BSE) listing requirements. 

The holding company’s banking subsidiary, Access Bank, sold 59 million shares in its Botswana subsidiary for BWP116 million ($8.6 million) last week, lowering its stake in Access Bank Botswana from 78.15 percent to 70 percent.

Boosting market dynamics through compliance

This divestment aligns with the BSE’s mandate requiring listed companies to maintain at least 30 percent of their shares in public hands. The move aims to enhance market dynamics and broaden shareholder participation.

“Through this sell-down, we have now achieved a critical element of compliance expected by the BSE, which not only adheres to regulatory standards but also presents an opportunity for enhancing market dynamics and our shared value story by welcoming new shareholders,” said Sheperd Aisam, managing director of Access Bank Botswana.

The BSE’s decision to raise the free float requirement from 20 percent to 30 percent in January 2019 was intended to stimulate trading activity and improve liquidity. However, this regulatory change led to controversy and the delisting of several companies, including the retail chain Funmart.

Access Holdings diversifies across continents

Founded in 1988, Access Bank has grown significantly, now operating over 700 branches worldwide and serving 60 million customers across three continents. With a presence in 22 markets, including sub-Saharan Africa, the UK, and Dubai, and representative offices in China, Lebanon, and India, the bank employs approximately 28,000 people in Nigeria.

Access Holdings, the parent company, has expanded its financial footprint across Africa and Europe. The conglomerate operates in 12 African nations and has diversified into banking, asset management, payments, pensions, and insurance. This expansion aligns with Aig-Imoukhuede’s vision and is supported by a $229 million capital raise through a rights issue.

Earlier this year, Access Holdings’ market capitalization exceeded $1 billion, with the company receiving approval to establish a Restricted Licence Branch in Hong Kong. Additionally, Access Bank has enhanced its digital lending capabilities, disbursing $456 million through its QuickBucks digital loan platform over the past seven years.