Access Bank To Acquire Kenya’s Sidian Bank
Access Bank Plc is set to acquire the entire 83.4 per cent equity stake held by Centum Investment Plc, a Kenyan-based investment company, in Sidian Bank Ltd, for the sum of N15 billion ($37 million).
The bank disclosed the acquisition in a statement sent to the Nigerian Exchange Limited, NGX. It noted that the transaction is subject to regulatory approvals in Kenya and Nigeria.
Access Bank said the purchase consideration includes the price to “book multiple of 1.1 times” based on the audited March 31, 2022 shareholders’ equity of Sidian.
Commenting on the transaction, Herbert Wigwe, the 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.”
“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.”
On his part, Roosevelt Ogbonna, Chief Executive Officer, Access Bank, said the transaction builds on their 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.”
Also commenting, Centum CEO, James Mworia, said the deal will bring in the required monetary value that would be used to invest in other strategic sectors in East Africa.
“This transaction stands as one of the largest private equity transactions in East Africa and reflects a strong commitment by Access Bank to the future of the Kenyan economy,” said Mworia.
“It advances Centum’s vision to be Africa’s foremost investment channel, and bolsters our track record of attracting foreign investors into Kenya and the region to invest in extraordinary enterprises.”