Nigerian bank to acquire a 70% stake in Fina Bank

Guaranty trust bank (GTBank) plans to acquire a 70 per cent stake in the Fina Bank Group.Balivada Rao, the managing director of Fina Bank Rwanda, a subsidiary of the Kenyan-based lender, confirmed the development in a phone interview on Thursday, saying the deal was subject to regulatory approvals. Rao said the buy-out would greatly benefit both the bank and its clients in terms of products and service delivery.“GTBank is a well capitalised, technologically advanced and customer-focused bank. So, once they acquire the 70 per cent stake, they will enable us roll out better products and services and put us in a better position to get funding from foreign development finance institutions,” explained Rao. The deal is worth about $100m (Rwf65.1b).Rao said GTBank was a key player in the West African market, where it operates in Nigeria, Ghana, Gambia, Sierra Leone, Liberia and Ivory Coast, as well as in the United Kingdom. At the end of 2012, the bank had a total asset base of $11.1b, shareholder funds of over $1.8b and earned $558.9m profit after tax. GTBank is listed on both the Lagos and London stock exchanges.According to sector analysts, GTBank wants to enter the East Africa region through a multi-country and scalable approach to enable it easily expand its international presence in sub-Saharan Africa.If the deal is approved, GTBank will join a list of other West African banks, including Ecobank and Access Bank, which have ventured into the region to tap into its fast-growing economies and immense opportunities, especially in oil and gas.Fina Bank Group has total assets of $338m. Its loan book was $184m in the first quarter of this year. The bank operates 38 branches across Kenya, Uganda and Rwanda.Rwanda contributes close to 40 per cent of the bank’s income, while Kenya contributes 60 per cent.

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Nigerian bank to acquire a 70% stake in Fina Bank