Letshego Africa has agreed to sell five of its East and West African subsidiaries to Axian Digital Venture Holdings and Management Limited as it sharpens its focus on its core Southern African markets.
The proposed transaction covers Letshego’s operations in Ghana, Tanzania, Nigeria, Rwanda and Uganda. The company said the disposal forms part of its previously announced portfolio optimisation strategy aimed at improving capital efficiency and concentrating management attention on markets where it has greater scale and stronger competitive positioning.
Letshego Group Chief Executive Officer Reinette van der Merwe said the sale marks an important milestone in simplifying the business and focusing on markets with the best prospects for sustainable growth.
“By streamlining our portfolio, we expect to enhance capital efficiency, strengthen our balance sheet and position Letshego to deliver improved returns and sustainable long-term value for shareholders,” she said.
No financial terms of the deal were disclosed.
Dubai-headquartered Axian said the acquisition aligns with its ambition to expand its financial services footprint across high-growth African markets.
Chief Executive Officer Erwan Gelebart said the group plans to build on the acquired businesses’ existing strengths and accelerate the development of modern financial services in those markets.
Letshego said the transaction is expected to strengthen its regulatory capital position, improve liquidity and support return on equity over time. The group added it would increase focus on its deposit-led funding model, short-term credit products, and transactional and savings solutions.
The company said all affected businesses would continue operating normally during the transaction process, which remains subject to regulatory approvals and applicable stock exchange requirements.