Access Bank Deepens Commitment to South Africa with Expanded Subsidiary Shareholding

…Will Recapitalise Unit With $24.7m

Access Bank has deepened its commitment to Africa’s largest economy with a sale of 25.45% stake of its South Africa subsidiary to help drive Black Economic Empowerment.

The Bank recognized the difference between the Sales proceed (N8.3 billion) and the carrying amount of the portion of investment disposed (N9.7 billion) in the statement of comprehensive income for the period.

On 30 May 2025, Access Bank Plc completed the sale of 25% (1,083,261,865) shares and an additional share of 1 of its ordinary shares in Access Bank South Africa to a consortium of Broad-Based Black Economic Empowerment (“B-BBEE”) purchasers, who are unrelated third parties.

Access sold its South African unit stake down from 97.89% to 72.35%.

The transaction was undertaken to comply with the South African Broad-Based Black Economic Empowerment (B-BBEE) legislation, which promotes the inclusion of B-BBEE eligible citizens within the South African economy.

In the separate financial statements, the Bank continues to carry the remaining investment in subsidiary at cost.

The transaction was agreed at a total consideration of ₦10.3 billion (equivalent to ZAR 116.1 million), which is receivable after three years from the transaction date.

The fair value was determined by discounting the expected future receivable using a 7.25% discount rate, corresponding to the South African Reserve Bank’s monetary policy rate at the disposal date.

The difference between the nominal consideration and the fair value represents the impact of the time value of money and will be unwound to profit or loss over the three-year period using the effective interest method.

Meanwhile, Access Holdings is investing USD24.7 million in Access Bank South Africa as deposits for shares for the recapitalization of the bank. following the approval of the Central Bank of Nigeria.

Access Holdings had on its books a subscription for investment relating to the transaction of N34.62 billion.

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