 Plc Nigeria’s largest bank by assets has increased its equity stake in E-tranzact to 23.8 percent to play more){kind=link}
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Access Holdings (HoldCo) Plc Nigeria’s largest bank by assets has increased its equity stake in E-tranzact to 23.8 percent in a bid to play more aggressively in the payments space.
E-tranzact (ETRAN), a fully integrated fintech platform in Africa was founded in 2003. It is one of the leading independent players in Lagos, Nigeria with a diversified license and product capabilities, including payment processing and banking and payment services across Africa.
The company has enjoyed continuous and consistent growth in top line revenue and subscriber base and activity over the past 5 years and is positioned for continuous growth post Covid.
Nigerian banks have been trying to play more actively in the payments space since the success of firms like flutterwave.
Access Holdings holds an equity interest of 1.896 billion ordinary shares of 50k each in E-tranzact International Plc as at 31 December 2021, representing 23.80% equity participation in the company.
The group’s effective ownership in ETRAN increased from 5.46% in 2020 to 23.80% in 2021 as the bank acquired more shares from the company.
The proportion of the Bank’s interest is the same as the proportion of voting rights.
As at 31st December, the fair value of the Bank’s investment in E-tranzact was N3.16 billion
The Group exercises significant influence in E-tranzact International Limited by virtue of its more than 20% shareholding in the entity and the representation of one director on the board of the company and significant participation in the company’s operating and financial policies.
The exisiting investment the Bank had in Etranzact was initially recognized in the books under equity instruments measured at Fair value through profit or loss.
At the point of increasing the stakes of the Bank in Etranzact by means of the Right issue, the existing shares were reclasified to investment in associates at their fair value.
Access HoldCo’s entire issued share capital of 35,545,225,622 ordinary shares of 50 Kobo each were on 28 March 2022, listed on the Daily Official List of NGX at N9.95 per share.
The delisting of Access Bank and listing of Access HoldCo on NGX is pursuant to the Scheme of Arrangement between Access Bank Plc and the holders of its fully paid ordinary shares of 50 Kobo each as approved by the Securities and Exchange Commission and sanctioned by the Court.
Access Bank Plc had earlier announced that it has received the Central Bank of Nigeria’s Approval-in-Principle for the Bank’s restructuring to a holding company (“HoldCo”).
The proposed HoldCo structure would enable the Bank to further accelerate its objectives around business diversification, improved operational efficiencies, talent retention as well as robust governance.