Access Bank Holdings announced that it has entered an agreement with Centum Investment Company Plc (‘Centum’) to acquire its 83.4% stake in Sidian Bank Limited. This will be Access Bank’s second acquisition in Kenya in recent times. The Pan-African bank acquired Transnational Bank in 2020.
According to Sunday Ekwochi, Company Secretary in a statement, the purchase consideration is approximately up to N15 billion ($37 million), representing a price to book multiple of 1.1x based on the audited 31 March 2022 shareholders equity of Sidian.
Sidian Bank was founded in 1984 as K-Rep Bank. In 2015, Centum Investment Company completed its acquisition of a majority stake in the bank and changed its name to Sidian bank in 2016 to reflect its majority shareholding.
Sidian will be merged with Access Bank’s subsidiary in Kenya, Access Bank Kenya to create a stronger banking institution better positioned to serve Kenya market.
Commenting on the transaction, Mr. Herbert Wigwe, the Group Chief Executive, Access Corporation said: “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,” he added.
Mr. Roosevelt Ogbonna, Chief Executive Officer of Access Bank also said: “This transaction builds on our earlier acquisition of the former transactional 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. 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 Kenya market with enhanced capacity to play a more impactful role in the growth of its economy while delivering increased profitability for our shareholders,” he added
Access Bank has been growing aggressively across the continent through acquisition of banks in other countries. In a span of the last three years, it has acquired Grobank in South Africa, announced its intention to acquire 100% of Zambia’s Cavmont Capital, through its subsidiary, Access Bank Zambia and it is in talks with Atlas Mara to buy its assets in Botswana, Zimbabwe and Zambia.
The transaction requires regulatory approval in both Kenya and Nigeria.
