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Key Points
- Bidvest Group has agreed to sell its 100% stake in Bidvest Bank to Access Bank for $157.2 million as part of its portfolio simplification.
- The sale, expected to close within six months, will help Bidvest reduce debt and support its broader restructuring strategy.
- Access Bank sees the acquisition as key to expanding its African presence and strengthening its tech-driven, diversified business model.
Bidvest Group, the South African distribution conglomerate led by Mpumi Madisa, has agreed to sell its entire stake in Bidvest Bank Holdings Limited to Access Bank for $157.2 million.
The deal, part of Bidvest’s strategy to simplify its financial services portfolio, is expected to close in the next six months, pending regulatory approval, aligning with the end of Bidvest’s fiscal year. The proceeds will be used to reduce Bidvest’s debt as part of its broader restructuring.
This follows the recent sale of Bidvest’s stake in FinGlobal to Momentum, with the company also considering offers for Bidvest Life.
Strategic expansion for Access Bank
Mpumi Madisa, CEO of Bidvest, expressed confidence that Access Bank will offer "exciting growth potential" for Bidvest Bank. She assured stakeholders that the company would continue to support the bank through the transition, maintaining financial stability and operational integrity. "We will ensure the business remains sound and will keep regulators and stakeholders informed," Madisa stated.
Roosevelt Ogbonna, Managing Director of Access Bank, stated, "This acquisition strengthens our African expansion, with South Africa as a key focus. It highlights our commitment to a resilient, diversified, and tech-driven business model. Bidvest Bank’s local expertise combined with Access Bank’s trade and retail banking will drive long-term growth and value."
Bidvest’s turnaround and growth under Mpumi Madisa
Bidvest, a leader in business services, financial services, and freight, has experienced a turnaround under Madisa’s leadership. Its market capitalization rose to R94.86 billion ($5.3 billion), following a recovery from a R186.9 million ($10.31 million) loss in 2020 to a net profit of R6.77 billion ($373.77 million) for the 2024 fiscal year ending June.
Bidvest Bank reported a trading profit of R371 million ($20.8 million) and operating income of R377 million ($21.1 million) for FY 2024. Its loan book, consisting of leased assets, loans, and advances, stood at R6 billion ($337 million), funded by R8 billion ($449 million) in deposits.
Access Bank, part of Access Holdings, continues to expand globally with operations in 22 markets, including sub-Saharan Africa, the UK, and Dubai. Recently, it launched a fully owned subsidiary in Malta, reinforcing its push under Aigboje Aig-Imoukhuede. With nearly 30,000 employees in Nigeria, Access Bank is set to drive growth across Africa and beyond.
