Dubai-based Axian Digital Venture Holdings and Management Limited is set to take over Letshego Ghana Savings and Loans PLC.
This forms part of a wider acquisition of selected East and West African subsidiaries of Letshego Africa Holdings Limited under a proposed transaction announced by the Botswana-headquartered financial services group.
In a statement, Letshego announced that it entered into binding sale and purchase agreements with Axian Digital Venture Holdings and Management Limited for the sale of 100 per cent of the issued share capital in its Ghana, Tanzania, Nigeria, Rwanda and Uganda subsidiaries, namely Letshego Ghana Savings and Loans PLC, Letshego Faidika Bank Tanzania Limited, Letshego Microfinance Bank Nigeria Limited, Letshego Rwanda PLC Limited and Letshego Uganda Limited.
“The proposed transaction represents a decisive step in the execution of Letshego’s previously communicated portfolio optimisation strategy, which is designed to strengthen capital efficiency and concentrate management focus on the Group’s core Southern African markets,” part of the statement read.
The Group Chief Executive Officer of Letshego, Reinette van der Merwe, commenting on the development, said the divestment marks a key milestone in the company’s strategy to simplify operations and concentrate on markets where it has stronger scale and competitive positioning.
“This proposed transaction marks an important milestone in the execution of our strategy to simplify the Group and focus on markets where we have the greatest scale, stronger competitive positioning, and the most compelling opportunities for sustainable growth.
“By streamlining our portfolio, we expect to enhance capital efficiency, strengthen our balance sheet, and position Letshego to deliver improved returns and sustainable long-term value for shareholders.
Reinette van der Merwe added, “Importantly, we believe Axian is a strong and like-minded business with the financial capacity, complementary operational strengths and market knowledge to support continued growth of these subsidiaries, underpinned by its commitment to financial inclusion and Africa’s development.”
The Chief Executive Officer (CEO) of Axian Digital Venture Holdings and Management Limited, Erwan Gelebart, also described the agreement as part of its long-term strategy to deepen its footprint in high-growth African markets.
“This agreement represents an important step in advancing Axian’s long-term strategy to expand our financial services footprint across high-growth markets. Axian brings a strong track record in operating regulated financial institutions at scale and investing in digital and operational capabilities that support sustainable growth, delivering innovative financial services directly and through its portfolio companies and strategic partnerships, to more than 24 million consumers and small and medium-sized enterprises across Africa.
“We look forward to the approval of the proposed sale and working with the teams in these businesses to continue serving customers, build on their existing strengths and accelerate the development of modern financial services across these markets,” Erwan Gelebart remarked.
Letshego added that the transaction is expected to enhance liquidity and balance sheet resilience while allowing the group to increase focus on its deposit-led funding model, short-term credit solutions and expansion of transactional and savings products.
The company said all affected subsidiaries, including Letshego Ghana Savings and Loans PLC, will continue operating normally during the transaction process pending regulatory approvals and stock exchange requirements.
