NOTIFICATION OF A PROPOSED ACQUISITION OF THE LETSHEGO GHANA SAVINGS AND LOANS PLC AND LETSHEGO MICROFINANCE BANK NIGERIA LIMITED BY AXIAN DIGITAL VENTURE HOLDING AND MANAGEMENT LIMITED (“AXIAN DIGITAL”)

NOTIFICATION OF A PROPOSED ACQUISITION OF THE LETSHEGO GHANA SAVINGS AND LOANS PLC AND LETSHEGO MICROFINANCE BANK NIGERIA LIMITED BY AXIAN DIGITAL VENTURE HOLDING AND MANAGEMENT LIMITED (“AXIAN DIGITAL”)

Purpose of the notification of the proposed acquisition
The ECOWAS Regional Competition Authority (ERCA) has received a notification concerning the proposed acquisition by Axian Digital Venture Holding and Management Limited (“Axian Digital”) the Acquirer of Letshego Ghana Savings and Loans PLC and Letshego Microfinance Bank Nigeria Limited, the Targets.
This transaction is subject to prior authorisation by ERCA, in accordance with Article 2(1)(a) of Regulation C/REG.23/12/21 on the rules and procedures governing mergers and acquisitions within the ECOWAS region, as well as Enabling Rule PC/REX.1/01/24 on notification thresholds. As the transaction involves enterprises operating across multiple member States, a Community notification was required.
The proposed transaction involves the acquisition by Axian Digital Venture Holding and Management Limited (“the Acquirer”) of Letshego Ghana Savings and Loans PLC and Letshego Microfinance Bank Nigeria Limited (collectively, the “Target Companies”). The Target Companies are currently owned by Letshego Africa Holdings Limited and, in the case of Letshego Microfinance Bank Nigeria Limited, indirectly through Letshego Mauritius Limited.
The transaction will confer sole control of the Target Companies on the Acquirer. It is being undertaken pursuant to a Framework Agreement entered into between the sellers, the Target Companies, and the Acquirer, and will be implemented through separate Share Purchase Agreements for each Target Company.
Parties to the transaction
• Axian Digital Venture Holding and Management Limited (“Axian Digital” or the “Acquirer”) is an investment holding company incorporated in the Dubai International Financial Centre (DIFC), United Arab Emirates, and is wholly controlled by Mr. Hassanein Shahreza Hiridjee. It forms part of the Axian Group, which is active in telecommunications, mobile financial services and digital infrastructure. Within the ECOWAS Common Market, the Axian Group primarily operates in Togo, Senegal and Côte d’Ivoire. The transaction concerns the acquisition of sole control of Letshego Ghana Savings and Loans PLC and Letshego Microfinance Bank Nigeria Limited.
• Letshego Ghana Savings and Loans PLC and Letshego Microfinance Bank Nigeria Limited (the “Target Companies”) are regulated financial institutions belonging to the Letshego Africa Holdings Limited Group. They operate respectively in the savings and loans sector in Ghana and the microfinance banking sector in Nigeria, providing, among other things, deposit-taking services, credit facilities, digital lending and financial services to individuals, micro-enterprises and small and medium-sized enterprises.
Nature and scope of the transaction
Upon completion of the transaction, the Axian Group will acquire sole control of the Target Companies. The Axian Group is primarily active in telecommunications, digital infrastructure, mobile financial services, data centres and financial technology across several African countries, including within the ECOWAS Common Market, while the Target Companies specialise in the provision of microfinance, savings and loans, lending and deposit-taking services in Ghana and Nigeria.
Expected outcomes of the transaction
From the perspective of the Parties, the acquisition will enable the Axian Group to strengthen its presence in the financial services sector in West Africa by integrating regulated microfinance institutions in Ghana and Nigeria, in line with its regional development strategy.
The transaction is also expected to enhance the operational and technological capabilities of the Target Companies through the Axian Group’s expertise in digital financial services, data analytics, artificial intelligence-based credit assessment and digital infrastructure. It is expected to promote the development of new digital financial products, improve service quality, expand access to credit, strengthen financial inclusion and generate operational efficiency gains arising from the integration of the complementary capabilities of the Parties.
Third-party rights
Pursuant to Article 44(2)(a)(iv) of the ERCA Manual of Investigation and Notification Procedures, interested third parties may submit their observations within thirty (30) days from the publication of this notice.
Comments must be accompanied by relevant supporting documents and sent under confidential cover to:
ECOWAS Regional Competition Authority (ERCA)
Bertil Harding, Bijilo, The Gambia
P.O. Box 4470
Or by email to: registry@erca-arcc.org and info@erca-arcc.org