By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-Guaranty Trust Bank Plc (“GTBank”) Tusday announced it has acquired a 70 percent (70%) stake in Fina Bank Limited,  (“Fina Bank”) .

Fina Bank in a notice to the Nigerian Stock Exchange (NSE) said it has reached an in-principle agreement for the acquisition by GTBank of a 70% shareholding in it.

The Bank said the agreement is subject to customary regulatory approvals in Kenya, Nigeria, Rwanda and Uganda.

Fina Bank is a privately owned bank which was founded in 1991, operating in Kenya, Rwanda and Uganda with headquarters in Kenya. According to its unaudited consolidated financials as at March 31, 2013, Fina Bank had total assets of US$338 million, gross customer loans of US$184 million and customer deposits of US$285 million. The Fina Bank Group currently operates through 38 branches and employs 550 people across the three countries. Fina Bank serves a wide range of customers, primarily offering business and corporate banking services. The Group is particularly active in the manufacturing, trade and services sectors.

In line with the in-principle agreement GTBank will acquire 70% shareholding in Fina Bank through a combination of:

(a.) Capital injection in Fina Bank, and

(b.) Acquisition of shares from the current shareholders.

The total consideration to be paid by GTBank is estimated at about US$100 million and subject to closing adjustments.

Furthermore, GTBank and the remaining shareholders of Fina Bank will enter into a Shareholders’ Agreement to ensure a smooth transition of the governance and operations of Fina Bank, with the possibility of acquiring further shares in due course. The remaining shareholders of Fina Bank include its founder and current Chairman, Mr. Dhanu Chandaria.

The proposed acquisition will enable GTBank enter East Africa through a multi-country and scalable platform, thus expanding its international presence into Sub-Saharan Africa. This transaction is being pursued consistently with GTBank’ s disciplined and profitable track -record in its external growth strategy, with the ultimate objective of creating value for its shareholders via synergies and sharing of best-in class expertise.

The market will be notified immediately the requisite regulatory approvals are obtained.