Access Holding Plc trading as Access Corporation has announced that its wholly subsidiary, Access Bank plc entered into a binding agreement with Kenyan- based Centum Investment for the acquisition of the entire 83percent equity held by Centum in Siden Bank Limited.
This was disclosed in a letter dated June 8, 2022, to the Nigeria Stock Exchange by Access Corporation.
The purchase consideration is approximately up to N15 billion ($37million), representing a price to book multiple of 1.1x base on the audited 31 March, 2022shareholders’ 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 Kenya market.
Commenting on the development, the group chief executive, Access Corporation, Herbert Wigwe, said: “The growth transaction being implemented in Kenya represents the relentless focus and execution of our strategic objective 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 represent the largest market and trade corridor in East Africa. The significant increase in scale and customer base represent 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.
Roosevelt Ogbonna, chief executive officer of Access Bank also said: the transaction builds on our earlier acquisition of the former Transnational Bank plc (now Access Bank Kenya and underscores our resolves to strengthen our present in Kenya, a key African market that fits into our strategic focus t for geographic earning 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 Africa Community and broader COMESA region. The proposed combination with Access Bank Kenya would undoubtedly propel Access Bank into a strong contender in the Kenya market with enhanced capacity to play a more impactful role in the growth of its economy while delivering increase profitability for our shareholders”
This transaction is subject to the fulfillment of condition precedent including regulatory approvals in Kenya and Nigeria
