Homegrown, pan-African microlender Letshego Africa has called an AGM for the consideration of a $62.7 million (P840 million) deal to sell its East and West subsidiaries.
In a recent notice to shareholders, the group said it would seek their approval on June 19 to advance with the sale to Axian Digital Venture Holding and Management Limited.
The assets in the deal are Letshego Ghana Savings and Loans PLC, Letshego Faidika Bank Tanzania Limited, Letshego Microfinance Bank Nigeria Limited, Letshego Rwanda Limited, and Letshego Uganda Limited. The assets collectively recorded a loss of P519.5 million in Letshego last financials, a deterioration from a loss of P154.8 million in the prior period.
According to the circular to shareholders, the assets have a combined market value of P823.9 million, and the deal will be done at a discount of P281.1 million to the group. The microlender has, over the years, experienced adverse trading conditions within most East and West African operations due to macroeconomic pressures, foreign exchange volatility, inflationary conditions, increased credit impairments, and regulatory developments, which have contributed to losses.
In previous years, shareholders in the group have clashed over Letshego’s pan-African expansion, as rising losses in some East and West African subsidiaries indicated that the Namibia and Botswana profits were propping these up. With the sale, Letshego will focus on its operations in Botswana, Namibia, Mozambique, Lesotho, Eswatini, and Kenya.
