With its 73-year-old history in banking services, Grobank has this evening announced an exciting development set to connect key African markets following a R400 million investment into the bank by Access Bank Plc, a Nigerian multinational commercial bank.
Access Bank Plc, with its head office in Lagos, has entered into a definitive agreement with the holding company of Grobank Limited, GroCapital Holdings Limited. The investment will be made in two tranches over the next two years with an initial cash consideration for a 49% shareholding, and a second transaction, increasing to a majority equity stake. Both tranches are subject to various regulatory approvals.
Grobank CEO Bennie van Rooy confirms to Food For Mzansi that the transaction remains subject to shareholder, regulatory and Competition Commission approvals, and that the initial transaction is expected to become unconditional on or before 31 October 2020.
“Grobank welcomes the agreement with Access Bank, which will ensure that Grobank remains sustainable and will continue to support all its stakeholders, while opening doors to growth opportunities both in the short and long term.”
Access Bank is a leading full-service commercial bank operating through a network of more than 600 branches and service outlets, spanning 3 continents, 12 countries and 31 million customers. The bank employs 28 000 people in its operations across Africa and the United Kingdom (with a branch in Dubai) and representative offices in China, Lebanon and India.
The agreement will see Grobank being renamed Access Bank South Africa Limited once the necessary approvals have been obtained, says Van Rooy, with a broader focus and ability to serve a number of other industries alongside its current focus on the food value chain, a key sector for Grobank.
“Access Bank is a strong, robust and credible shareholder with a passion for Africa and strong support for its future operations in South Africa,” Van Rooy says.
“This agreement not only brings solid financial investment, but a commitment to financing and facilitating a sustainable future for our clients through innovation and best in class operations.”
GroCapital Holdings, whose shareholders include the Afgri Group Holdings, the Public Investment Corporation as Africa’s largest investment manager and Fairfax Africa Holdings, a leading global investor, will retain an existing, but diluted shareholding in the bank.
The proposed transaction is expected to provide Access Bank with access to the largest banking market in Africa and enable a broader African footprint with enhanced capabilities to fulfil the needs of multi-national clients.
Says Van Rooy: “Grobank is excited at the prospects on offer for our clients and funding providers, as well as the planned growth of our footprint coupled with the renowned Grobank personalised customer service into new market sectors across the continent.”