THUR 31 MARCH, 2022-theGBJournal| Access Bank (ACCESS) shares were delisted from the NGX Exchange on Monday, 28 March 2022, and the shares of the restructured entity, Access Holdings (ACCESSCORP), were listed.
The group announced the completion of the corporate restructuring, which aims to create strategic flexibility to adapt to future business opportunities and diversify the group’s revenues.
The group also introduced ACCESSCORP’s new board and changes to the board of Access Bank, its banking subsidiary. The Central Bank of Nigeria (CBN) has approved the new appointments.
The NGX Exchange lifted the suspension of trading earlier placed on Access Bank plc (ACCESS) shares in preparation for the Access Holdings plc’s (ACCESSCORP) listing on Monday, post two trading days. Since then, traders have exchanged 45.75m ACCESSCORP shares, with the stock rising 1.0% to N10.05. In yesterday’s session, the stock was the most traded by value (N305.51m).
We highlight that there is no share dilution post-restructuring for investors, as the share exchange ratio from ACCESS to ACCESSCORP is 1:1. Access Holdings is set eventually to consist of four subsidiaries designed to tap into the market opportunities in: regulated banking (Access Bank); consumer lending (Grow Microfinance Bank Limited); electronic payments (The Payment Services Company Limited); and retail insurance (Access Insurance Brokers Limited).
We welcome this development at a time when competitive pressures are intensifying in the traditional banking space, and banks need to find new revenue streams and value in new opportunities. A holding company model in this environment is a tried and tested route for Nigerian banks to explore earnings growth outside of the challenging banking sector. It also provides scope for investors to value the group on a sum-of-the-parts basis and give management room to explore cross-selling opportunities across a large group.
The group announced new appointments at the holdco and bank levels. Looking back, ACCESSCORP’s choice of CEO falls in line with the precedent created in recent years – Stanbic IBTC, FCMB, and GTBank’s CEOs all moved up to the holding company. At the holdco level, the board composition is quite small, with nine members, compared with 15 at the bank. Again, this is similar to the structure at GTCO.
‘’However, we expect the numbers to grow as the non-bank subsidiary operations begin in earnest. Overall, we are encouraged by the new appointments, given their many years of experience across key positions within the bank and financial services at large,’’ says Coronation Research analysts.
Access Holdings board members
-Mr Bobabode Osunkoya – Chairman / Independent Non-Executive Director
-Mr Herbert Wigwe – Group Managing Director / Chief Executive Officer
-Mr Abubakar Jimoh – Independent Non-Executive Director
-Mrs Fatimah Bello-Ismail – Independent Non-Executive Director
-Mrs Ojinika Olaghere – Non-Executive Director
-Mr Olusegun Ogbonnewo – Non-Executive Director
-Mr Roosevelt Ogbonna – Non-Executive Director
-Mr Oluseyi Kumapayi – Non-Executive Director
-Ms Bolaji Olaitan Agbede – Executive Director
Access Bank board members
-Dr (Mrs) Ajoritsedere Josephine Awosika – Chairman / Non-Executive Director
– Mr Roosevelt Ogbonna – Group Managing Director / Chief Executive Officer (new appointment)
-Mr Victor Etuokwu – Deputy Managing Director, Retail North (new appointment)
– Mrs Chizoma Okoli – Deputy Managing Director, Retail South (new appointment)
-Mrs Anthonia Ogunmefun – Non-Executive Director
-Mr Paul Usoro – Non-Executive Director
-Dr Okey Nwuke – Non-Executive Director
-Mrs Omosalewa Fajobi – Non-Executive Director
-Mr Adeniyi Adekoya – Independent Non-Executive Director
-Mr Iboroma Akpana – Independent Non-Executive Director
-Mrs Ifeyinwa Osime – Independent Non-Executive Director
– Mr Hassan Usman – Independent Non-Executive Director
– Dr Gregory Jobome – Executive Director
– Ms Hadiza Ambursa – Executive Director
-Mr Oluseyi Kumapayi – Executive Director
Stock Rating: BUY
Price Target: N12.88
Price (29-Mar-2022): N10.05
Potential Upside / Downside: +28.2%
Tickers: ACCESSCORP NL / ACCESSCORP.LG
With Coronation Research.
Twitter-@theGBJournal|Facebook-The Government and Business Journal|email: gbj@govbusinessjournal.ng|govandbusinessj@gmail.com
