Business
Access Holdings Receives Regulatory Approval for Acquisition of Majority Stake in ARM Pensions
Access Holdings Receives Regulatory Approval for Acquisition of Majority Stake in ARM Pensions
Access Holdings Plc, a leading financial services group, has recently announced a significant development in its strategic expansion plans. The group’s subsidiary, Access Golf Nigeria Limited, has successfully obtained regulatory clearances for its proposed acquisition of a majority equity stake in ARM Pensions Managers (PFA) Limited (ARM). This move marks a pivotal moment in the pension fund administration landscape in Nigeria and is poised to reshape the industry significantly.
The National Pension Commission and the Federal Competition and Consumer Protection Commission have both granted their ‘no objection’ and approval, respectively, for the transaction. This regulatory green light paves the way for the intended merger of the operations of ARM and Access Pensions, with the goal of creating Nigeria’s second-largest Pension Fund Administrator (PFA) by Assets Under Management.
Dr. Herbert Wigwe, the Group Chief Executive of Access Holdings, expressed his enthusiasm regarding the transformative milestone, stating, “We are pleased to have reached this transformative milestone in our pension fund administration journey. The proposed combination of ARM Pension with Access Pensions will not only create sustainable stakeholder value but will also contribute positively to the growth and development of the pension industry. We anticipate an exciting future for the combined entity.”
Jumoke Ogundare, the Group CEO of ARM Holding Company Limited, also expressed confidence in the merger, highlighting the potential for creating a formidable pension fund administration business that leverages Access Group’s expansive distribution network and innovation culture to deliver sustainable value to stakeholders.
It is important to note that the completion of this transaction is contingent upon obtaining all requisite regulatory approvals, and Access Holdings remains committed to keeping the market informed in line with its disclosure obligations.
In addition to the ARM Pensions acquisition, Access Holdings has been actively pursuing strategic expansion opportunities. Notably, Access Bank PLC, a flagship subsidiary of Access Holdings, has entered into a definitive agreement for the acquisition of a majority equity stake in the Ugandan-based Finance Trust Bank (FTB). This move aligns with Access Bank’s broader strategy to strengthen its presence in the African financial market.
The transaction with FTB is subject to regulatory approvals by the Central Bank of Nigeria and the Bank of Uganda and is expected to close in the first half of 2024, following the fulfillment of customary conditions precedent. Upon completion, Access Bank is poised to own an estimated 80% shareholding in FTB, presenting a significant opportunity for both entities to collaborate and create enhanced opportunities for financial inclusion, product diversification, and customer-centricity.
Access Bank’s extensive global presence, spanning over 20 countries, provides a robust platform that FTB’s customers can leverage to boost trade opportunities with the rest of the world. This strategic acquisition not only reinforces Access Bank’s commitment to expanding its footprint but also underscores its dedication to fostering inclusive growth and economic development across the African continent.
In conclusion, Access Holdings’ recent developments reflect the group’s strategic vision to strengthen its position in the financial services sector, both domestically and internationally. The successful regulatory clearances for the acquisition of ARM Pensions and the ongoing negotiations with FTB underscore Access Holdings’ commitment to driving sustainable growth, fostering innovation, and creating value for its stakeholders. These strategic moves are poised to shape the future landscape of pension fund administration and financial inclusion, further solidifying Access Holdings’ position as a leading player in the African financial services industry.
