Letshego Africa Holdings Limited is set to exit Ghana and four other African markets after entering into agreements to sell five subsidiaries to Axian Digital Venture Holdings and Management Limited.
The deal forms part of Letshego’s broader strategy to streamline operations and focus more strongly on its Southern African markets.
The subsidiaries involved in the proposed transaction include Letshego Ghana Savings and Loans PLC, Letshego Faidika Bank Tanzania Limited, Letshego Microfinance Bank Nigeria Limited, Letshego Rwanda PLC Limited and Letshego Uganda Limited.
According to the company, the move is aimed at improving operational efficiency, strengthening capital allocation and positioning the group for long-term growth.
Group Chief Executive Officer of Letshego, Reinette van der Merwe, described the transaction as an important step in simplifying the company’s operations and focusing on markets where it has stronger competitive advantages.
She said the restructuring would help strengthen the balance sheet, improve capital efficiency and support sustainable returns for shareholders.
Van der Merwe also expressed confidence in Axian’s ability to grow the businesses due to its operational experience and commitment to financial inclusion across Africa.
Axian Digital Venture Holdings, which is headquartered in Dubai, currently serves more than 24 million consumers and SMEs across the continent through its financial services and digital platforms.
Chief Executive Officer of Axian Digital Venture Holdings, Erwan Gelebart, said the acquisition aligns with the company’s strategy to expand its footprint across high-growth African markets.
He noted that Axian intends to continue building on the strengths of the acquired businesses while expanding modern financial services in the affected countries.
Letshego stated that all subsidiaries involved in the transaction would continue operating normally during the transition process.
The proposed acquisition remains subject to regulatory approvals and stock exchange requirements.
Source: graphic.com.gh