Nigerians snap 60% of Bankom ownership

By Vision Reporter

InterSwitch Ltd, a Nigerian-based electronic transaction and payment solution provider, has acquired a 60% stake in Bankom Ltd, the local interbank switch operator.

The switch allows the customers of member banks to use each other’s ATMs. Bankom was previously owned by Cashnet (80%) and Pesacom (20%), which have now reduced to 32% and 8%.

The two firms are owned by Ugandans, while InterSwitch is owned by Nigerian banks and institutional investors.

Dr. William Kalema and Charlotte Kaheru have been maintained as Bankom chairman and managing director.

Kalema and Mitchell Elegbe, the InterSwitch boss, said in a statement the deal would create “a stronger Bankom to handle the growing demand for a market-driven electronic payment infrastructure to drive the growth of payment products of real value to the public.”

“The deal will also usher an era of real-time electronic funds transfer and transaction processing and switching solution, that takes away the burden of backroom processing from the banks,” they said.

Kaheru said they would ride on InterSwitch’s experience to deliver superior value.

“We have implemented phase one of our growth strategy. We have seen increased customer confidence in our solutions as evidenced by the growth in member banks on the network.

“The strengths and synergies created by this union will reinforce our product base and network footprint,” she said.

Patrick Mweheire, the head of investment banking at Renaissance Capital, said the deal was “a turning point in the companies’ strategic future.”

“InterSwitch has acquired an excellent platform to repeat its successes in Nigeria and Bankom instantly has access to a unique set of products and services marketable across the region.”