- Letshego Africa Holdings is selling five subsidiaries to Dubai-based Axian Group as part of a portfolio overhaul aimed at sharpening focus on Southern Africa and improving capital efficiency
GAZETTE REPORTER
Letshego Africa Holdings Limited has agreed to sell five of its African subsidiaries to Axian Group in a landmark transaction that signals a strategic shift toward its core Southern African markets.
The deal, structured through binding sale and purchase agreements with Axian Digital Venture Holdings and Management Limited, involves the sale of 100 percent of Letshego’s issued share capital in subsidiaries in Ghana, Tanzania, Nigeria, Rwanda and Uganda.
The move marks a major step in the group’s portfolio optimisation strategy, which has been previously communicated to investors as part of a broader effort to simplify operations and strengthen capital allocation.
Strategic Focus
Letshego Group Chief Executive Officer Reinette van der Merwe said the transaction was designed to sharpen the group’s strategic focus.
“This transaction reflects a strategic decision to focus capital and management attention on core priorities to support sustainable growth and value creation,” van der Merwe said in an interview.
She said the disposal would allow the company to concentrate on markets where it has greater scale, stronger competitive positioning and clearer long-term growth prospects.
The transaction represents a full exit from the five businesses, meaning Letshego will not retain ownership or operational control once the deal is completed.
“The focus will be on ensuring a smooth and orderly handover, with limited, time-bound support in place to help the business transition effectively,” she said.
Worker Impact
Letshego said there are no immediate job cuts planned as a direct result of the transaction.
According to van der Merwe, employee roles, tenure and employment terms are expected to transfer in line with applicable laws and regulations, under legal frameworks designed to protect workers during ownership changes.
“The buyer’s strategy is to grow the business in these markets, which supports continuity in the near term and long-term opportunities for employees over time,” she said.
She added that leadership changes could happen over time as the businesses are integrated into Axian’s governance and reporting structures, though continuity remains a priority during the transition.
Transition Plan
The transaction remains subject to customary regulatory approvals, a standard requirement in cross-border financial services acquisitions.
Letshego said operational continuity remains central to the deal, with systems, contracts and service arrangements expected to remain intact during and after the transfer.
“No disruption is expected,” van der Merwe said, adding that detailed transition planning and transitional service agreements were being put in place to support uninterrupted customer service.
Existing customer contracts, pricing and service levels are expected to remain unchanged in the immediate term.
On valuation, Letshego said the transaction reflects fair value based on market conditions, business performance, growth prospects and comparable deals.
Proceeds from the sale, the company said, will be used in line with its capital allocation framework, including strengthening the balance sheet, reinvesting in core operations and improving financial flexibility.
The group said compliance, anti-money laundering, sanctions and know-your-customer controls would remain in place throughout the transition.