Access Bank Plc is set acquire the majority equity stake in Kenya’s Sidian Bank Limited from Centum Investments Plc for the sum of Ksh4.3 billion ($36.8 million).
Subject to regulatory approvals in Kenya and Nigeria, the 83.4% buy-out deal will be the sixth of such acquisitions made by the bank in five years.
Access Bank in a statement yesterday said the valuation was based on “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.”
Centum Investments had on Tuesday announced a binding agreement to sell 83.4% stake in Sidian to the Nigerian lender, which has been on an acquisition spree in 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.
Commenting on the deal, the Group Chief Executive, Access Corporation, 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.”
Similarly, the Chief Executive Officer, Access Bank, Roosevelt Ogbonna, 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.”
Ogbonna said the acquisition and intended subsequent merger would create a strong and competitive balance sheet for Access Bank in Kenya.
He added that the acquisition also positioned the bank to be well-placed to promote regional trade finance and other cross-border banking services in the East African Community (EAC) and broader Common Market for Eastern and Southern Africa (COMESA) region.
