Nigeria’s Guaranty Complete Fina Bank Buyout

FinaNigerian lender – Guaranty Trust Bank (GT Bank), has completed the the acquistion of a majority stake in Fina Bank through a share purchase from current shareholders and direct investment, the Red Pepper Online edition has learnt.

The bank has been looking for between Sh2.6 billion and Sh3.49 billion as additional capital to fund its growth plans.

Fina Bank Uganda, a subsidiary of the Kenyan lender – Fina Bank Group which is rebranding to Guaranty Trust Bank Kenya, has tapped Adekunle Sonola as CEO and Olaboyo Veracruz as executive director in changes that saw it name six new board members.

The changes were announced on financial group’s official website.

The bank acquired a majority stake in Fina Bank, set up in 1991, through a share purchase from current shareholders and direct investment in a deal valued at $100 million.

Guaranty Trust Bank had $10.76 billion (Sh930 billion) in net assets last December and it joins West African peers UBA Uganda and Eco Bank which recently set up shop in Uganda.

Outside Kenya, Rwanda has been the most successful market for Fina Bank while Uganda is still slightly below the break-even level.

Rwanda contributes close to 40 per cent of the bank’s income while Kenya contributes 60 per cent. Uganda has not been contributing much to the bank’s revenues.

According to 2011 figures from Bank of Uganda, Fina Bank ranks 19th in the local market, with an asset base of $35 million (about Shs89.5 billion), 1 per cent market share and seven branches.

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