GTBank acquires Fina Bank of Kenya
The parent company of Guaranty Trust Bank (Ghana) Limited, Guaranty Trust Bank Plc, has reached an agreement to acquire a 70-per cent stake in Kenya's Fina Bank Limited. Advertisement
The deal is worth US$100 million, subject to customary regulatory approvals in Kenya, Nigeria, Rwanda and Uganda.
The new acquisition is expected to increase from seven to 10 the number of countries that GTBank has presence in because Fina Bank, headquartered in Kenya, also operates in Rwanda.
Guaranty Trust Bank (Ghana) Limited, otherwise known as GTBank, currently operates in Ghana, The Gambia, Sierra Leone, Liberia, Cote d’Ivoire and the United Kingdom.
A release from the Ghana office of the bank said: “The acquisition forms part of the bank’s strategy to increase its international footprints across sub-Saharan Africa. It seeks to first and foremost enter East Africa through a multi-country and scalable platform, where the transaction is being pursued consistently with GTBank’s disciplined and profitable track-record in its external growth strategy”.
It said the ultimate objective was to create value for its shareholders through synergies and sharing of best-in class expertise. It is also to assure customers and other stakeholders of the viability of their bank and the strength of the brand.
As per its unaudited consolidated financials as of March 31, 2013, Fina Bank had total assets of $338 million, gross customer loans of $184 million and customer deposits of $285 million. The group currently operates through 38 branches and employs 550 people across the three countries.
GTBank will acquire the 70 per cent shareholding in the bank through a combination of capital injection in Fina Bank, and an acquisition of shares from the current shareholders, thus bringing the total consideration to be paid by GTBank to an estimated $100 million, subject to closing adjustments and exchange rate movements.
Reacting to the news of the new acquisition, the Managing Director of Guaranty Trust Bank (Ghana) Limited, Mr Lekan Sanusi, was upbeat about the potential benefits that would inure to the bank’s customers here in Ghana and its subsidiaries in other countries.
Daily Graphic/Ghana