Access Corporation, the parent company of Access Bank Plc on Wednesday announced its acquisition of a Kenyan bank with approximately N15 billion (USD37 million).
Consequently, the Corporation’s wholly-owned subsidiary, Access Bank has entered into a binding agreement with Kenyan-based Centum Investment Plc for the acquisition of the entire 83.4 percent equity stake held by Centum in Sidian Bank limited.
This was contained in a statement signed by Sunday Ekwochi, company secretary, and published on the NGX.
The purchase consideration is approximately up to N15 billion representing a price to book multiple of 1.1x based on the audited March 31, 2022 shareholders’ equity of Sidan.
Sidan will be merged with Access bank’s subsidiary in Kenya, Access Bank Kenya, to create a stronger banking institution better positioned to serve the Kenyan market.
Commenting on the transaction, Herbert Wigwe, group chief executive, Access Corporation, said, “this growth transaction being implemented in Kenya 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.
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The acquisition of Sidan 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 we are building in our trade and payment business. The economies of scale that drive therefrom will continue to drive and enhance contributions to all stakeholders,” he said.
Roosevelt Ogbonna, chief executive officer of Access Bank, also commented, “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 in 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.”
The transaction according to the statement is subject to the fulfilment of conditions precedent including regulatory approvals in Kenya and Nigeria.
