Access Bank, a subsidiary of Access Holdings, has agreed to acquire a majority stake in Uganda-based Finance Trust Bank.

Access Holdings disclosed this in a notice to the Nigerian Exchange Limited and the investment public.

In the notice signed by the Company Secretary, Sunday Ekwochi, it noted that the transaction involves Access Bank's acquisition of a majority stake from existing shareholders and a capital injection by Access Bank to increase FTB's capital base, both which are subject to regulatory approvals by the Central Bank of Nigeria and Bank of Uganda.

It added that following the conclusion of customary conditions precedent and the anticipated closing of the transaction in the first half of 2024, Access Bank would own an estimated 80% shareholding in FTB.

Daily Trust reports that the acquisition is coming at a time commercial banks in Uganda are struggling to meet new minimum capital requirements of $40.7 million by end of December 2024.

Commenting on the transaction, Group Chief Executive of Access Holdings, Dr. Herbet Wigwe, said, "The transaction marks an important milestone for Access Bank as it moves us closer to the achievement of our five-year strategic plan through continued expansion into key markets. We are building a strong and sustainable franchise to support economic prosperity, encourage Africa trade, and advance financial inclusion thereby empowering many to achieve their financial dreams. The expansion to Uganda will support the realization of our aspiration to become Africa's payment gateway to the world."

Managing Director of FTB, Annet Nakawunde Mulindwa, said the alliance will fortify its position in the financial landscape and enable it to offer its customers a broader array of innovative products and services.