Access Holdings Plc has said, it plans to acquire 83.4 per cent of Kenya’s Sidian Bank Limited, a deal which it is spending N15 billion to close.
The deal was announced to investor in a letter to the Nigerian Exchange Group yesterday. This transaction is subject to the fulfillment of conditions precedent including regulatory approvals in Kenya and Nigeria.
The bank, in the letter signed by its company secretary, Sunday Ekwochi, has entered into a binding agreement with Kenyan-based Centum Investment Pic for the acquisition of the entire 83.4% equity stake held by Centum in Sidian Bank Limited.
The purchase consideration is approximately up to N15 billion, representing a price to book multiple of 1.1x based on the audited 31 March 2022 shareholders’ equity of Sidian.
Sidian 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, the group chief executive, Access Corporation, Mr. Herbert Wigwe, 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.
“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 we 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.”
Chief executive officer of Access Bank, Mr. Roosevelt Ogbonna, also said: “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.”
