Nigeria’s Access Bank has acquired 83.4% majority stake in Kenya’s Sidian Bank Ltd.
Access Holdings’ CEO, Herbert Wigwe, described the acquisition as “a significant step-up in scale and potential for Access Bank in Kenya.”
Access Bank Plc, a top Nigerian lender and subsidiary of Access Holdings, announced earlier today that it has begun the process of acquiring an 83.4% majority stake in Nairobi-headquartered Sidian Bank Ltd.
In a corporate disclosure that was filed with the Nigerian Exchange, the lender informed stakeholders that it has already signed a binding agreement to this effect with Centum Investment Plc, which currently controls Sidian Bank.
Business Insider Africa understands that the deal is for a consideration price of $37 million. Once it is finalised, Sidian Bank would be merged with Access Bank Kenya; thus creating a stronger financial institution better positioned to serve customers in the East African country.
Meanwhile, the Group Chief Executive Officer of Access Holdings, Herbert Wigwe, has given more insight into the rationale behind the deal, saying:
“The 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”.
This is the latest in a string of recent acquisitions by Access Holdings. Over the past five years, there have been concerted efforts by the banking group to position itself as a truly pan-African bank. Specifically, the group has made a number of inorganic Africa-focused expansion moves in places like South Africa, Botswana, Zambia and of course Kenya.
Source: Business Insider Africa