The homegrown microlender said in a recent filing on the Botswana Stock Exchange (BSE) that it had entered into binding sale and purchase agreements for its subsidiaries in these regions with Dubai-based investment and financial services firm Axian Digital Venture Holdings and Management Limited. The proposed transaction will see Letshego offload 100% of its issued share capital in several East and West African subsidiaries to Axian Digital Venture Holdings and Management Limited. The entities earmarked for disposal are Letshego Ghana Savings and Loans PLC, Letshego Faidika Bank Tanzania Limited, Letshego Microfinance Bank Nigeria Limited, Letshego Rwanda PLC Limited and Letshego Uganda Limited.
“The proposed transaction represents a decisive step in the execution of Letshego’s previously communicated portfolio optimisation strategy, which is designed to strengthen capital efficiency and concentrate management focus on the Group’s core Southern African markets,” Letshego said in an update to shareholders Letshego Group CEO, Reinette van der Merwe, said the deal reflects the company’s commitment to simplifying its structure and concentrating on markets where it enjoys greater scale and competitive advantage. “This proposed transaction marks an important milestone in executing our strategy to simplify the Group and focus on markets where we have the strongest positioning and most compelling growth opportunities,” she said.
