Access Bank, a subsidiary of Access Holdings, has increased its controlling stake in the fintech company, E-tranzact, to 37.56 per cent as of December 2022.
Ripples Nigeria gathered that Access Bank acquired 1.87 billion shares in E-tranzact last year, increasing its ownership stake in the fintech from 23.8 per cent in 2021.
As of April 28, Access Bank’s investment in E-tranzact is worth N12.43 billion, up from N5.68 billion held in the fintech company in 2021.
The share acquisition was revealed in E-tranzact’s first quarter (Q1) report for 2023. Although Access Holdings, in its Q1 report, said it didn’t receive a dividend for the investment.
Access Holdings revealed that existing investment in Etranzact was initially recognised in the books under equity instruments measured at Fair value through profit or loss, but “At the point of increasing the stakes of the Group in Etranzact by means of the Right issue, the existing shares were reclasified to investment in associates at their fair value,” Access Holdings said.
The financial institution stated further: “The Group holds an equity interest of 3,455,729,217 ordinary shares of 50k each in E-tranzact International Plc as at 31 December 2022, representing 37.56% equity participation in the company. No dividend income was received from ETRAN during the year.
“The group’s effective ownership in ETRAN increased from 23.8% in 2021 to37.56% in 2022 as the Group acquired more shares from the company. The proportion of the Bank’s interest is the same as the proportion of voting rights. As at 31st December, the fair value of the Bank’s investment was N12.1Bn.
“There are published price quotations for the associate on the Nigerian Stock Exchange. There are no significant restrictions on the ability of the associates to transfer funds to the group in the form of cash dividends, or repayments of loans or advances. The associate was accounted for using the equity method at the Group level.
“The Group exercises significant influence in E-tranzact International Limited by virtue of its more than 20% shareholding in the entity and the representation of one director on the board of the company and significant participation in the company’s operating and financial policies.”
[RipplesNigeria]