Business

Access Financial acquiring US-based finance company

Friday, October 19, 2018

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Access Financial Services (AFS) is finalising an agreement to acquire a Florida-based consumer finance company by January 2019.

The acquisition, which, according to the company, is now at a sensitive stage, is subject to satisfaction of all conditions of the purchase agreement and applicable legal and regulatory approval.

While tight-lipped on the details, the microfinance company in a note to shareholders on the Jamaica Stock Exchange said the transaction forms a part of AFS's thrust to expand its operation, diversify revenue stream and create opportunities for all stakeholders.

AFS's Florida acquisition will mark the company's first purchase outside of Jamaica. In 2015, AFS acquired the loan portfolio of Asset Management Company Ltd, a subsidiary of Proven Investments Ltd, for $439 million, following Proven's purchase of 135,239,271 units or 49.27 per cent of participating voting shares in AFS.

The company then struck a $180-million deal for Damark Ltd, a company primarily serving government workers, shortly before acquiring the loan portfolio, fixed assets and trade name of Micro Credit Ltd for $80.7 million in 2017.

Today Access Financial operates from 25 branch locations including its subsidiaries.

For the quarter ended June 30, 2018, AFS recorded net profit after tax of $217 million, 16 per cent above the corresponding quarter of 2017. AFS attributed the increase to strategies employed, including expanding its footprint as well as offering competitive rates and services to customers to grow the company's loan book.

AFS's net loan portfolio also showed an increase of $586 million or 23 per cent for the quarter under review; moving from $2.57 billion for the corresponding 2017 period to $3.16 billion. AFS had total assets of $3.86 billion as at June 2018, an increase of 21 per cent, in tandem with increased disbursements. Total liabilities of the company decreased marginally.

—Karena Bennett

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