Access Bank Plc, Nigerian lender, is offering to acquire Kenya’s Sidian Bank Limited, for N15 billion ($37 million).
The amount is for the purchase of the 83.4 per cent shareholding of Centum Investment Plc, a leading East Africa investment firm listed on the Nairobi Securities Exchange and Uganda Securities Exchange, in the bank.
According to Mr Roosevelt Ogbonna, chief executive of Access Bank, “This transaction builds on our earlier acquisition of the former Transnational Bank Plc (now Access Bank Kenya) and underscores our resolve to strengthen our presence in Kenya, a key African market that fits into our strategic focus for geographic earnings growth and diversification.”
“The acquisition and intended subsequent merger will create a strong and competitive balance sheet for Access Bank Kenya, positioning us to be well-placed to promote regional trade finance and other cross border banking services in the East African Community (EAC) and broader COMESA region.
“The proposed combination with Access Bank Kenya would undoubtedly propel Access Bank into a strong contender in the Kenyan market with enhanced capacity to play a more impactful role in the growth of its economy while delivering increased profitability for our shareholders,” he added.
On his part, Mr Herbert Wigwe, group CEO of Access Holdings Plc, the parent company of Access Bank, stated that the deal “represents the relentless focus and execution of our strategic objectives within our banking subsidiary even as we grow the other businesses within Access Corporation’s core segments.”
“The acquisition of Sidian is a significant step-up in scale and potential for Access Bank in Kenya which represents the largest market and trade corridor in East Africa.
“The significant increase in scale and customer base presents us with enormous opportunities to support growth in the various ecosystems were are building in our trade and payment business.
“The economies of scale that derive therefrom will continue to drive and enhance contributions to all stakeholders,” he further stated.
In a notice issued to announce the proposed purchase, it was stated that the valuation was based on the audited results of the Kenyan lender for the first three months of this year. The deal is still subject to regulatory approvals in Nigeria and Kenya.
