Access Bank Plc, a subsidiary of Access Bank Holdings Plc, has entered into a binding agreement with Centum Investment Plc for the acquisition of 83.4% equity held by Centum in Sidian Bank Limited in Kenya.
Access Bank announced the acquisition in a statement signed by Sunday Ekwochi, Company Secretary, Access Bank and obtained by Investors King.
The acquisition is estimated at US$37 million or N15 billion. This represents a price to book multiple of 1.1x based on the audited 31 Match 2022 shareholder’s equity of Sidian.
According to Access Bank, upon completion of the acquisition, 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 deal, the Group Chief Executive, Access Bank, 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.”
Also commenting on the transactions was Mr. Roosevelt Ogbonna, the Chief Executive Officer of Access bank. Ogbona explained that the acquisition will strengthen the bank’s presence in Kenya and support geographic earnings growth and diversification.
He 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 ley 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.”