Bidvest sells Bidvest Bank to Access Bank for R2.8B, marking a major deal in SA’s banking sector.

Bidvest has announced plans to sell its financial services division, Bidvest Bank, for R2.8 billion. This sale is part of a broader strategy to divest from three businesses within the group.

The deal involves transferring 100% ownership of Bidvest Bank Holdings Limited to Access Bank plc, a Nigerian-based financial institution. The transaction is subject to regulatory approvals, which is standard for deals of this size and nature.

"Bidvest will continue to support Bidvest Bank to ensure that it remains financially sound and operationally stable throughout the disposal process,” the group stated.

Access Bank is a global commercial banking institution, serving over 60 million customers through 700 branches across 23 countries on three continents. It has a strong presence in Africa, as well as subsidiaries and offices in the UK, China, UAE, and several other regions.

“As a diversified financial institution, it combines a strong retail customer franchise and digital platform with deep corporate banking experience to service various markets through four business segments: retail, business, commercial and corporate,” said Bidvest Bank.

Access Bank has strong financial performance, with shareholders’ equity surpassing $1.7 billion as of December 2023. Its customer loans and deposits stood at $6.0 billion and $12.5 billion, respectively. Since entering the South African market in 2021 by acquiring Grobank Limited, the bank has worked towards becoming Africa’s gateway to the world.

The R2.8 billion proceeds from the sale will help settle Bidvest’s existing debt. Access Bank also plans to include Broad-Based Black Economic Empowerment (B-BBEE) initiatives, such as an Employee Stock Ownership Plan.

Bidvest expects regulatory approvals to take around six months, aiming for a transaction completion before the end of the financial year. In FY24, Bidvest Bank generated a trading profit of R371 million and operating income of R377 million. Its portfolio consists primarily of leased assets, loans, and advances valued at R6 billion, funded by R8 billion in deposits.

Other Transactions

Bidvest is also selling FinGlobal, its financial emigration services provider, to Momentum Group. The sale will retain all employees and awaits regulatory clearance.

Additionally, the group has received binding offers for Bidvest Life from several life insurers, with a final agreement expected soon.

“Bidvest Bank, FinGlobal, and Bidvest Life will be disclosed as a Disposal Group held for sale in the consolidated Bidvest financial statements for the financial year, which commenced 1 July 2024,” the group noted.