BARCLAYS Bank has finally concluded the acquisition of Nile Bank with the integration process of the two institutions expected to be completed by the end of the year.
â€œThis is day one of the integration process. A sale and purchase agreement was signed on February 1 and completed on February 28 after obtaining approval from Bank of Uganda,â€ Nick Mbuvi, the Barclays Bank managing director, told reporters in Kampala on Thursday.
The takeover will see Barclays acquire a 100% stake in Nile Bank and add its 25 branches to Barclaysâ€™ existing seven and swell the workforce to over 500.
Mbuvi declined to divulge the financial details of the deal but banking experts said sh29b or 2.5 times Nile Bankâ€™s sh11.7b net asset value would be a good estimate.
Barclays net asset value was sh56b by the end of last year with customer deposits amounting to sh255.7b. This is more than three times Nile Bankâ€™s sh77b.
Nile Bankâ€™s assets amount to shl34b with revenues standing at shl8b.
Mbuvi said the deal signals Barclays commitment to Uganda and highlights the companyâ€™s growth plans.
â€œThe transaction is a vote of confidence in the Ugandan economy.
â€œWe have growth plans to extend our banking services to more people over the next three years and this means new products for customers and more points of contact,â€ he stated.
He disclosed that Nile Bank staff will not be sacked but absorbed in the expanded branch network.
Customers of Nile Bank will also enjoy existing products like debit cards and trade capabilities as well as the new products that will be rolled out.
Richard Byarugaba, the Nile Bank managing director, said the acquisition would create a broader bank that will create new products while members of staff have opportunities to work in countries or regions where Barclays operates.
Byarugaba will continue to run Nile Bank separately during the integration process in fulfilment of regulatory requirements.
Barclays concludes Nile Bank takeover