To comply with the listing requirements of the Botswana Stock Exchange (BSE), Access Bank has reduced its stake in its Botswana subsidiary. From 2019, the listing requirement states that listed companies must have a minimum of 30% of their total shares available to the public for trading.
A controversial decision to raise the Botswana Stock Exchange’s free float from 20% to 30% in January 2019, aimed at stimulating trading and liquidity, resulted in the delisting of multiple companies.
Access Bank Plc acquired a 78.15% stake in BancABC Botswana for P1.07 billion in December 2018, subsequently listing the subsidiary on the Botswana Stock Exchange.
To accomplish the current listing requirement, Access Bank Plc, sold 59 million shares at $8.6 million (P116 million), reducing its stake from 78.15% to 70%.
Through this sell down, we have now achieved a critical element of compliance expected by the BSE, which not only adheres to regulatory standards but also presents an opportunity for enhancing market dynamics and our shared value story by welcoming new shareholders.
Sheperd Aisam, Access Bank Botswana Managing Director.