Letshego Africa Holdings Limited has announced that it has entered into “binding sale and purchase agreements” with Axian Digital Venture Holdings and Management Limited (Axian), headquartered in Dubai, for the proposed sale of 100% of the issued share capital in five Letshego East and West Africa subsidiaries.
The subsidiary companies of Letshego which are up for sale are Letshego Ghana Savings and Loans PLC (in Ghana), Letshego Faidika Bank Tanzania Limited (in Tanzania), Letshego Microfinance Bank Nigeria Limited (in Nigeria), Letshego Rwanda PLC Limited (in Rwanda), and Letshego Uganda Limited (in Uganda).
In a statement Letshego Namibia Holdings says that this transaction does not have any impact on Letshego’s Namibian operations.
Commenting on the announcement, Reinette van der Merwe, Group Chief Executive Officer of Letshego, said: “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.
“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.”
Ester Kali, Chief Executive Officer of Letshego Holdings Namibia and Letshego Bank Namibia, said: “This transaction is a reflection of Letshego Group’s deliberate and disciplined approach to building a stronger, more focused organisation.
“For Namibia, it is business as usual – our operations are unaffected, and our full attention remains on delivering accessible financial solutions to our customers and growing our contribution to Namibia’s financial inclusion agenda. We remain committed to our people, our partners and the communities we serve.”
Erwan Gelebart, CEO of Axian said: “This agreement represents an important step in advancing Axian’s long term strategy to expand our financial services footprint across high-growth markets.”
The transaction remains subject to regulatory approvals and applicable stock exchange requirements in each country.
In the photo: Reinette van der Merwe, the Group Chief Executive Officer of Letshego.
